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  • 1. AOn MASTER TRuST cORPORATE SuPER Employer Guide Trust Aon Master Trust Product Disclosure Statement ABN 68 964 712 340 RSE R1000566 phone 1300 880 588 fax 1800 010 435 Please read this document before making a decision to invest. email contactcentre@aon.com.au web aonmastertrust.com.au Trustee and Issuer Aon Superannuation Pty Limited ABN 83 057 982 822 AFSL 237465 RSE L0000437 date issued 1 July 2008 TODAY. TOMORROW. READY.
  • 2. ThE AOn MASTER TRuST product ratings SuPERAnnuATiOn iS A lOnG-TERM invESTMEnT. ThE AOn MASTER TRuST OffERS YOu invESTMEnT AnD inSuRAncE OPTiOnS TO SuiT YOuR nEEDS. Aon Master Trust Corporate Super has been awarded a five star rating for 2008/2009 by The Heron Partnership (for more information on the ratings system used and to view The Aon Master Trust is a registered superannuation fund the Heron Financial Services Guide for superannuation fund which invests for the benefit of members. ratings services see heronpartners.com.au) and a Platinum At 1 July 2008, the Trust has over $1.6 billion in assets, over rating for 2008 by SuperRatings (for more information on 60,000 members, and over 600 participating employers. the rating system used, see superratings.com.au). References to The Heron Partnership and SuperRatings in this PDS have The Aon Master Trust is managed by Aon Superannuation been authorised by the trademark holders. Pty Limited, an approved trustee regulated by the Australian Prudential Regulation Authority (APRA). Aon Superannuation The analysis and information upon which ratings are based is Pty Limited (‘the trustee’) is a wholly owned subsidiary of Aon considered accurate at the time a particular product is rated. Consulting Pty Limited part of the Aon group of companies. However, ratings agencies give no guarantee or warranty and make no representation as to the product or accuracy of the Financial planning services are not provided by Aon third party information provided to them. Ratings are produced Superannuation Pty Limited. without taking into account any individual’s financial needs, circumstances and objectives – any person should assess the AIG Life is the insurer of certain benefits of most, but not appropriateness of the advice in regard to their own financial all members. situation and consult a licensed financial adviser. AIG Life has agreed to this Product Disclosure Statement (PDS) containing information about AIG Life in Insurance options on cooling off period pages 26 to 41 and has not withdrawn its consent. AIG Life has not issued this PDS and has not approved any statements in this PDS that do not refer to AIG Life. Employers may have cooling-off rights in respect of an application to participate in the Aon Master Trust. The right must be exercised by notifying the trustee about this PDS within 14 days from the date of confirmation of the transaction or 19 days from the date of issue. This right This PDS describes the main features of the Aon Master Trust does not apply in the case of a ‘successor fund’ transfer. for Corporate Super employers. It will help you compare the Aon Master Trust with other corporate superannuation funds. Additional information is available if required – see Other important information on page 51. If a person needs more information about a financial services licensee, they will need to contact the financial services licensee. The Aon Master Trust also offers Personal Super for individual and self-employed members, spouses, or organisations with less than five employees, a Pension for those interested in purchasing a retirement income stream and a non- commutable pension for those transitioning to retirement. Contact us for more information. If you (the employer) are not a financial services licensee or an authorised representative of a financial services licensee, you must not give financial product advice about the Trust or recommend a superannuation product. Our formal complaints resolution procedure is described on page 53. TODAY. TOMORROW. READY. 2
  • 3. cOnTEnTS summary of features ................................. 4 services for employers ............................... 7 employer contributions made easy ........... 8 benefits for your employees ...................... 9 my ebenefits program .............................10 member contributions ............................. 11 the nuts and bolts of investing ................. 13 investment options summary ................... 15 investment options pre-mixed ................. 16 investment options sector ........................ 18 information on SRI option ........................24 insurance options ....................................26 insurance costs ........................................36 tax and super...........................................42 fees and other costs .................................44 accessing super benefits...........................48 other important information .................... 51 what to do next .......................................54 forms .......................................................55 note Fees and conditions in this PDS apply to employers who join Aon Master Trust Corporate Super on or after 1 July 2008. Fees and conditions will change over time and we will notify you of material changes. Existing members’ fees and conditions are as notified. The trustee reserves the right to correct any omissions in this PDS. If there is a discrepancy between this PDS and the trust deed, the trust deed will be the final authority. Member forms are available on our website aonmastertrust.com.au. The information in this document is general in nature. Your personal objectives, needs or financial situation were not taken into account when preparing this information. You should consider the appropriateness of any general advice before acting on it, having regard to your own objectives, financial situation and needs. If the information relates to a financial product, you should obtain and consider the relevant Product Disclosure Statement before making any decision to purchase that financial product. This document has been prepared by Aon Consulting Pty Limited (ABN 48 002 288 646, AFSL 236667) a related body corporate of the trustee of the Aon Master Trust (ABN 68 964 712 340, RSE R1000566), Aon Superannuation Pty Limited (ABN 83 057 982 822, AFSL 237465, RSE L0000437). This is a relationship that might reasonably be expected to be capable of influencing Aon Consulting Pty Limited when the company provides financial product advice to clients in respect of the Aon Master Trust. 3
  • 4. SuMMARY Of fEATuRES investment options AOn MASTER TRuST cORPORATE SuPER iS fOR cOMPAniES AnD ORGAniSATiOnS WiTh fivE EMPlOYEES OR MORE ThAT SElEcT ThE AOn MASTER You can nominate a default investment option. Your TRuST fOR ThEiR EMPlOYEES’ SuPER AnD/OR employees can choose investment options that suit them. inSuRAncE ARRAnGEMEnT. There are over 30 options to choose from, arranged in two categories – see pages 15 to 23. The standard Corporate Super options shown in this document can be customised at cost for large employers or pre-mixed options º those requiring defined benefit solutions – see page 47 or sector options. º call us for more information. insurance options contributions You can nominate a default level of insurance. Your employees can choose the type and level of insurance that The Aon Master Trust can accept the following contributions suits them. There is a minimum level of death and total and on behalf of members: permanent disablement cover of $210,000* (indexed) on employer contributions, including Superannuation º joining the fund. Guarantee (SG) contributions personal contributions º options to suit your employees super benefits rolled over from other funds º You can choose from three types of insurance cover and can government co-contributions º combine cover (see pages 26 to 41): spouse contribution splits and payments made under º death º family law arrangements death and total and permanent disablement º spouse contributions. º income protection. º Members’ spouses can also join Aon Master Trust Personal Super. Provision of all insurance cover is subject to acceptance of cover by the insurer, AIG Life. super benefits * Minimum cover reduces from $210,000 at age 42 to nil at age 65 – see graph on page 26. Super benefits may be payable to members in a range of circumstances: my ebenefits retirement º total and permanent disablement º Your employees get the benefit of an online one-stop shop designed to save them time and money. my ebenefits offers total and partial disability º quality financial and lifestyle products and services including: death. º free tax and legal advice º In addition members can choose to transfer their benefits insurance – including car, health, home and contents º within the Aon Master Trust or roll over their benefits in some circumstances. lending – from over 40 different providers º options for great leisure activities, gift ideas, º entertainment and travel. See page 10 for more information. TODAY. TOMORROW. READY. 4
  • 5. fees summary boost their balance Members can make personal contributions to their super, by completing and sending us a Lump sum contribution form compare our value with other super funds available on our website. If you, as the employer, allow for establishment fee it, members can salary sacrifice or make personal (after-tax) contributions by payroll deductions. none. contribution fee For insurance-only plans, members can still elect to make personal contributions or have employer SG contributions none. (under choice of fund) paid into their account. transfer fee For more information see the factsheet Salary sacrifice on none. our website. investment switching fee none. spouses can join too member fee Member spouses can join the Aon Master Trust (see page $63 pa indexed. 53). They should obtain a copy of the Aon Master Trust Personal Super PDS and complete the Personal Super: Member asset administration fee application form. up to 1.1% pa as negotiated with you or your adviser, if applicable. plan their investment strategy management fee Members can switch their current and/or future investments between 0.43% and 1.32% pa depending on investment at no cost. They can do it online once they receive their options chosen (default option fee is 0.46% pa), plus any user name and password or they can send us a completed performance fees which may be earned. Switching investment options – current members form or a withdrawal fee Change member details and options form. $80 per payment. choose the insurance cover that adviser service fee suits them up to 2% pa or up to $10,000 pa, as negotiated between members and their advisers, where applicable. Members can customise insurance cover and premiums according to their needs and the insurance calculator on our See Fees and other costs on pages 44 to 47. website aonmastertrust.com.au may help them make a choice. They can also transfer existing insurance cover (from a retail policy or super fund) to Aon Master Trust. See pages your employees get more 26 to 41 for more information on insurance options and from their membership forms that members need to complete. nominate their beneficiaries get their super together To choose a binding death benefit nomination, members Members can roll their super into one account and it can complete and send us the Binding death benefit may save them fees. They can send us a completed nomination form. To make a non-binding nomination, Request to transfer whole balance of superannuation benefits members must complete the relevant section in the Change between funds form. Copies are available on our website member details and options form. Both forms are available on aonmastertrust.com.au. our website aonmastertrust.com.au. The Trust makes anti- detriment payments to eligible dependants of members. For more information see the factsheet Rollover options on For additional information on death benefit nominations our website. see pages 34 and 52 and the factsheet Binding death benefit nomination on our website. 5
  • 6. plan ahead for retirement website and online services The Aon Master Trust offers a pension and a transition to retirement pension – see page 45. Members can download Forms for change of details, voluntary contributions, a Pension PDS from our website or call us on 1300 880 588 spouse membership, investments switches and to have a copy mailed to them. super transfers are available on our website aonmastertrust.com.au. financial planning services Employers can log onto their account details once For details of a qualified adviser, call us on 1300 880 588. access to Aon’s online services has been established (see page 8). Once your employees become members of the Aon Master Trust they will receive secure online access to view their account, including personal details, transaction history, beneficiary information and investments. They will also be able to switch investments, change their personal details including their non-binding beneficiary nomination and obtain benefit quotations online with complete security. Employers and members can call 1300 880 588. Our contact centre is open Monday to Friday, 7am to 7pm Eastern Standard Time (excluding NSW public holidays). TODAY. TOMORROW. READY. 6
  • 7. SERvicES fOR EMPlOYERS administration services financial planning services When you join the Aon Master Trust as a participating If your employees require individual financial advice, we can employer, your super services consultant and, if required, a arrange a consultation with a licensed planner. If a financial specialist transition team can coordinate the transfer of data plan is required, our licensed planners* can develop a plan from a previous super plan. If you have any questions about at a cost negotiated with the member, reflecting the level of the Aon Master Trust or superannuation in general, contact advice required. your super services consultant for assistance. * Financial planning services are not provided by Aon Superannuation Pty Limited. Superannuation statements, newsletters, annual reports and online services access information (see pages 6 and 10) will annual member information be delivered to each member’s home address on your behalf sessions – just provide us with contact details and we’ll do the rest. Aon Consulting can arrange information sessions to explain consulting services superannuation, investment performance and other relevant information for members. Please contact us for more information. Your super services consultant can provide the following services at no cost: Annual information sessions can include financial planning information for members. These sessions typically run for assist in up to two policy committee meetings per year º around an hour. If you want to offer your employees more where requested, present the investment options º detailed financial education or advice (eg seminars covering and structure of your plan to members at your tax and social security, or pre-retirement counselling) we can workplace through introductory and ongoing annual also provide services at a negotiated cost. information sessions answer technical questions on the Aon Master Trust or º on super in general. Consultants are also available to complete any assignments agreed with the employer on a time-cost basis. policy committees If you have more than 49 employees in the Aon Master Trust, the Trustee is required to set up a policy committee for your employees. If you have fewer than 50 members, a policy committee is only required at the request of at least five members. Aon Consulting will keep in regular contact with your policy committee, or you if a policy committee is not established. Your super services consultant can attend meetings of the policy committee to discuss the following agenda items: investment update º administration update º developments in superannuation º developments within the Aon Master Trust º other issues affecting the employers, the policy º committee and members. 7
  • 8. EMPlOYER cOnTRibuTiOnS MADE EASY AOn’S OnlinE SERvicES PROviDE A SEcuRE SuPER SOluTiOn fOR EMPlOYERS TO TAkE ThE hASSlE OuT Of SuPERAnnuATiOn ADMiniSTRATiOn AnD fREE uP TiME fOR YOuR PAYROll STAff. OncE OnlinE SERvicE AccESS hAS bEEn SET uP, MAkinG PAYMEnTS, ADDinG nEW EMPlOYEES AnD MODifYinG MEMbER DETAilS cAn All bE DOnE OnlinE. Aon’s online services include a ‘clearing house’ that allows employers to pay all their superannuation contributions by direct debit to the Aon Master Trust or any other eligible super fund that your employees nominate. To access Aon’s secure online service, new employers should complete and return a registration form. When your account is established, we will send your nominated employees user names and passwords which can be used to complete a Westpac PayDeduct authority form. Once you are registered, you can start making contributions, as summarised in the diagram at right. Your payroll staff can enter your employees’ choices and other contribution data through a series of menu-driven screens. They can select from a list of complying super funds to ensure your employees’ choices are valid. The contribution file is then loaded onto Aon’s administration platform and reviewed online. Once you approve the summary report, the contributions are processed. Contributions are managed through our streamlined ‘straight-through processing’ system. In conjunction with daily unit pricing, this means that contributions are allocated and records are updated as soon as possible on receipt via the banking system. Aon’s secure online services give employers online access to: electronic funds transfer º choice of fund services simplified payments via authorised direct debit º new member additions and member record º Under our standard service terms, employers are responsible modifications, taking the hassle out of administration for processing any completed Choice of fund forms. This real-time validation, ensuring only valid data is º includes checking the eligibility of chosen funds, resolving transferred any errors or problems, updating fund choices, and maintaining compliance records. integration of information with our super administration º system to avoid double-handling straight-through processing of contributions from payroll º to employees’ super accounts superannuation fund compliance status checking º encrypted data protection to ensure confidentiality. º TODAY. TOMORROW. READY. 8
  • 9. bEnEfiTS fOR YOuR EMPlOYEES competitive fees and insurance benefits on leaving premiums When an employee leaves your company, they have the option to keep their super benefit in the Aon Master Trust. The benefit The Aon Master Trust has a competitive fee structure. will be transferred to Aon Master Trust Personal Super, where Employers can negotiate employees’ fees and options – see the employee can continue their insurance and investment Fees and other costs on page 44. options, subject to some changes in fees. See Leaving an employer on page 49 for more information. Every three years, we review the competitiveness of premium rates and terms and conditions offered by the group insurance policy taken out by the trustee. Employers with five or more in summary employees gain the advantages of group insurance premiums with automatic acceptance levels for members joining the Trust when first eligible. See pages 36 to 41 for indicative The Aon Master Trust can offer your employees: premium rate options, subject to loading depending on the member investment choice with over 30 options to º characteristics of your employees and workplace. choose from a range of insurance options with competitive º investment and insurance premium rates choice and flexibility my ebenefits access by phone, email or on the web º (see page 10) personal service for employers from our super services º With over 30 investment options to choose from, your consultants and for members from our contact employees can invest according to their needs – see pages centre staff 15 to 23. security – all assets are held by an independent custodian º The Aon Master Trust offers insurance options to cover most clear, flexible and competitive administration fees º employee needs – see pages 26 to 41. public offer status – members can move from employer- º Concessional and non-concessional contributions can sponsored plans to personal plans. be made regularly from your employees’ salary. One-off We aim to give you the most appropriate level of service at contributions (eg a bonus payment) can be accepted as well. the right price. We accept spouse contributions and rollovers from other complying funds. my ebenefits Aon’s flexible my ebenefits program offers your employees online, phone and email support for financial, health and lifestyle service providers at no additional cost. For more information, see page 10. 9
  • 10. MY EbEnEfiTS PROGRAM ThE AOn MASTER TRuST cAn GivE YOuR EMPlOYEES my ebenefits can offer your employees benefits including: MORE ThAn juST OnlinE AccESS TO ThEiR free telephone and email-based tax and legal advice º SuPERAnnuATiOn infORMATiOn. private health insurance º online shopping with thousands of well-known products º Aon’s my ebenefits program offers online, phone and at wholesale prices email support for the other things in life, including health full travel service º and wealth services, legal and tax advice, shopping and entertainment discounts and resources including online flowers, adventure and leisure º calculators, tip sheets and other tools. entertainment links º access to financial planning º my ebenefits is a flexible employee benefits program designed to help satisfy the work-life balance and benefit life insurance, critical illness and income protection º needs of your workforce. The program can help employees home, contents, car, travel and boat insurance º finance a home purchase, buy a big-screen plasma TV, send home, investment and commercial loans. º flowers or arrange the perfect holiday quickly and easily. my ebenefits referrals are free to participating Aon Master Trust employers and their employees who are members of the Trust. Designed to assist employers to be the destination of choice for key talent, the program is adaptable for individual company requirements, including integrating company- specific benefits or packaged programs. For more information on my ebenefits, contact your super services consultant. my ebenefits case studies shopping for a better deal An Aon Master Trust member was looking to buy a new flat-screen television from a well-known dealer but wasn’t happy with the price. He called the my ebenefits buying service and they helped him source a better deal. saving money on a home loan The my ebenefits home page offers password-protected access to super, health, Another member was saving to go overseas and shopping, wealth and entertainment options and more and can be customised to wanted to convert his mortgage to interest only. He meet employers’ needs. visited the my ebenefits site and found information on a loan product that could reduce repayments by $100 a month. TODAY. TOMORROW. READY. 10
  • 11. MEMbER cOnTRibuTiOnS concessional contributions ThE AOn MASTER TRuST cAn AccEPT cOnTRibuTiOnS fROM EMPlOYERS, SElf-EMPlOYED MEMbERS, MEMbERS AnD ThEiR SPOuSES, AS WEll AS employer contributions TRAnSfERS fROM OThER SuPERAnnuATiOn funDS. Under Superannuation Guarantee (SG) laws, employers must make super contributions based on a percentage of salary or wages for most employees aged 18 to 70 who earn $450 making their super grow or more (before tax) in a calendar month. This percentage is currently 9%. These contributions will count towards a member’s concessional contribution cap. Members can keep their benefits in super as long as they like and earnings will be taxed at concessional tax rates. Under choice of fund legislation, employers choose They can also contribute to super until they turn 75 as long a ‘default fund’ but members can choose which super fund as they are gainfully employed on at least a part-time basis employers pay these contributions into. This is called their (members must work for at least 40 hours in 30 consecutive ‘chosen fund’. days in the financial year in which they contribute) after they If an employer nominates the Aon Master Trust as the default reach age 65. fund, but at a later stage a member’s chosen fund is not Making personal super contributions is optional but even the Aon Master Trust, any existing account balance may be small contributions may make a big difference to members’ transferred to the Trust’s ‘retained’ category. In this category benefits over time. fees may change, and the member may lose any insurance cover. Contact us for more information. contribution < 65 years 65 but 70 but 75 years type < 70 years < 75 years or more Members can elect to have employer SG payments made to their insurance-only plan under choice of fund legislation. employer SG no restriction no restriction no restriction no restriction salary sacrifice contributions It is possible for members to arrange personal (before-tax) voluntary no restriction must be must be cannot be contributions to their super (by way of ‘salary sacrifice’) if employer gainfully gainfully accepted employed employed you, as the employer, agree to this method of contributing. on at least a on at least a Members can also choose to have their bonus or pay rise part-time basis part-time basis paid into their super fund before tax is deducted, subject to member no restriction must be must be cannot be employer approval. These contributions can be regular or gainfully gainfully accepted employed employed one-off and may allow for members to pay less income tax on at least a on at least a than if they made the same amount of personal (after-tax) part-time basis part-time basis contributions. Contact us for more details. Contribution caps eligible spouse no restriction must be cannot be cannot be apply – see next page. gainfully accepted accepted employed on at least a self-employed contributions part-time basis Members who are self-employed or substantially self- employed are able to claim a full deduction for personal Regulation 7.04(6) of the SIS Regulations allows a regulated superannuation fund to accept a contribution in respect of a member if the trustee is reasonably contributions they make to super until age 75. Contribution satisfied that the contribution is in respect of a period during which the fund caps apply – see next page. could have accepted the contribution, notwithstanding that the contribution is made after that period. Concessional and non-concessional caps apply to contributions. See next page for more information. 11
  • 12. non-concessional contributions rolling over money from other funds If members have had different jobs, they may have money personal contributions in a number of different super funds. Moving or rolling Members can make personal (after-tax) contributions if they over these balances into one account may reduce fees and are aged under 65. They can also make personal (after-tax) paperwork and will make it easier to keep track of their contributions between age 65 and 75, as long as they are super. To roll over balances from other funds to the Aon gainfully employed on at least a part-time basis (members must Master Trust, members must complete the Request to transfer work for at least 40 hours in 30 consecutive days in the financial whole balance of superannuation benefits between funds form year in which they contribute). Contribution caps apply. available on our website aonmastertrust.com.au. One-off contributions can be made at any time using a Members will need to provide a certified copy of a photo ID Lump sum contribution form available from our website or by with each request. See Completing proof of identity on page 2 contacting us. If you, as the employer, allow for it, members of the form for more information. can make personal (after-tax) payments by payroll deductions. contribution caps Members can contribute to an insurance-only plan as well. Tax concessions will be available only up to the concessional eligible spouse contributions and non-concessional contribution caps, unless members Members can contribute to the Aon Master Trust on behalf qualify under transitional rules. of their spouse if their spouse is aged under 65. A spouse between 65 and 70 must be gainfully employed on at least Members can make up to $150,000 per year in a part-time basis to be eligible for spouse contributions. This non-concessional contributions or up to $450,000 averaged could mean that as a couple they may pay less lump sum over three years by bringing forward future annual limits tax. The spouse must already be a member of, or must join, (if they are under age 65 in the financial year). the Aon Master Trust – see page 53. Concessional contributions to superannuation will be limited Spouses may also contribute to the Aon Master Trust on the to $50,000 per person per year. member’s behalf subject to the conditions outlined above. These caps are indexed in line with movements in Average See Tax rebates for spouse contributions on page 42 or contact Weekly Ordinary Time Earnings (AWOTE). For more us for further details. information refer to the factsheet Tax on super on our website, contact the Australian Taxation Office on 13 10 20 government co-contribution or visit ato.gov.au/super. The Government may pay a superannuation co-contribution To help with retirement planning, a transitional period of up to $1,500 on a member’s behalf. The maximum will apply to members who are 50 or above and for those co-contribution amount is $1.50 for every $1.00 a member members turning 50 before 1 July 2012. During the adds to their super as a personal (after-tax) contribution, as transitional period, the cap on concessional contributions will long as their income is below the minimum threshold for be $100,000 from the financial year the member turns 50 that financial year. Self-employed members may also qualify until 30 June 2012. for the co-contribution. For more information, including the current thresholds, refer to the Government co-contributions factsheet on our website aonmastertrust.com.au, contact the Australian Taxation Office on 13 10 20 or visit ato.gov.au/super. TODAY. TOMORROW. READY. 12
  • 13. ThE nuTS AnD bOlTS Of invESTinG bEfORE lOOkinG AT invESTMEnT OPTiOnS, hERE fixed interest investments are typically a loan between a º ARE SOME kEY invESTMEnT PRinciPlES. borrower and a lender. The borrower (eg a government, bank or company) promises to pay the lender specific ‘fixed’ interest payments over the term of the investment and return the initial investment at the end of the loan. key principles Although prices for fixed interest assets vary and may occasionally be negative, they typically offer lower risk and return than property or shares. risk, return and asset classes cash is typically defined as short-term securities with a º A basic rule of investing is that the bigger the investment maturity date of less than one year. Cash investments risk, the bigger the potential return over the long term. offer a low level of risk, but are likely to provide the Investors typically structure investments across five asset lowest return of all asset classes over the long term. classes. Each asset class has a different level of risk/return as See the factsheet Introduction to asset classes on our website outlined below: aonmastertrust.com.au for more information. shares represent part ownership of a company. º Typically, all investments in this asset class are ‘listed’ diversification shares – ie traded on stock exchanges. Owning shares can provide both capital growth and a proportion of Diversification means spreading investments across different profits, called dividends. Share prices change frequently asset classes, managers’ products and/or investment and share investments typically offer a high level of risk strategies. The aim is to reduce the overall portfolio risk and return. while enhancing investment returns. A well-diversified property trusts and managed property funds invest portfolio facilitates smoothing of the fluctuations in returns º of particular asset classes. in commercial, retail, industrial, hotel and residential real estate. Property investments offer returns based on A diversified investment portfolio typically falls into one of property valuations and a rental income stream. Property three categories: trusts can either be listed (ie a security tradeable on a stock exchange) or unlisted. Property returns are cyclical growth – invests mainly in assets aiming to provide a º and typically have a higher risk/return profile than fixed higher return but with higher risk. Typical asset classes interest and cash. include shares, property and alternative assets. alternative assets typically include hedge funds, º balanced – invests in a mix of all major asset classes º private equity and infrastructure. Hedge funds use aiming to deliver a moderate return with a moderate specialist investment strategies to trade shares and fixed risk level. interest assets. Private equity investments are made in defensive – invests mainly in assets aiming to provide º companies not listed on a stock exchange. Infrastructure a moderate return with lower risk. Typical asset classes investments include utilities and other physical assets. include fixed interest and cash. Defensive investments These funds aim to achieve positive returns in both may also include some growth assets. rising and falling markets and are typically included in diversified portfolios to reduce exposure to risk over longer time frames. note If you do not select a default investment option for your employees, the standard Corporate Super default investment option is Pre-mixed Balanced – Index. 13
  • 14. index and active investments application of unit prices Major considerations when investing include how a fund Unit prices are derived and applied in an equitable manner manager can add value to exceed an underlying market that values members’ benefits and distributes investment index or benchmark, the risk undertaken by the manager, earnings and losses equally. The trustee applies a forward and the management fees. pricing mechanism to process transactions to/from the Trust. This means that all transactions are processed using Index fund managers seek to track the performance of a a unit price calculated after the Trust has received the stock index. For example, the Australian Shares – Index transaction request. The practical implications for members option is designed to closely match the performance of the are as follows: S&P/ASX 200 Accumulation Index for Australian shares. contributions – we process contributions within time Index managers typically charge less than active managers. º limits that conform to standards maintained by the Active fund managers aim to outperform their benchmark trustee, using the price applicable on the date of by using research, active portfolio management and trading processing. This is normally within five working days of strategies. There is a risk, especially over short time horizons, receipt of a contribution and appropriate paperwork. that an active manager may underperform the relevant benefit payments – we use the unit price on the day º market index. Active fund managers typically charge more benefit payments are processed. Benefits are normally for taking this approach, but believe potential improved processed within three to five business days after all investment performance will justify the cost. required information is received. investment switches – we process investment switches º unit pricing policy and procedures no earlier than the third business day after receipt of the completed request and normally within five The trustee has adopted a formal unit pricing policy for the working days. You will receive the unit price applicable Trust. The trustee can change this unit pricing policy and any to the date the switch is processed. underlying procedures at any time. The calculation of the unit price for each investment option is: Unit prices fluctuate from day to day but in extraordinary market conditions the price variations can be significant. Net asset value* (of the relevant investment option) Unit price = The variations can also be significant in options which own The number of units on issue for members relatively small levels of assets compared to cash flows in and for that investment option. out. The trustee does not accept liability for any losses that * The net asset value is equal to the gross asset value (ie market value of the a member may perceive that he or she has suffered except underlying investments and cash at bank for that investment option) as at the where it is established that the published unit pricing policy close of business on a given day, plus accrued income minus indirect expense recoveries minus investment income tax provisions. has not been applied. The trustee reserves the right to suspend unit pricing activities at its discretion in exceptional circumstances. note This includes the right to suspend unit prices (and therefore processing contributions to/from the Trust) in extreme market conditions. The unit pricing policy conforms to Investment returns are not guaranteed and can standards issued by government regulators and relevant fluctuate over time. Past earnings are not an industry bodies. indication of future earning rates. TODAY. TOMORROW. READY. 14
  • 15. invESTMEnT OPTiOnS SuMMARY AOn MASTER TRuST MEMbERS MAY chOOSE OnE OPTiOn OR A Mix Of OPTiOnS fROM ThE liST bElOW (MiniMuM 5% PER chOSEn OPTiOn). MEMbERS cAn MAkE A DiffEREnT chOicE fOR ThEiR cuRREnT SuPER bAlAncE AnD fOR ThEiR fuTuRE cOnTRibuTiOnS. Members can log into their account online once they receive their user name and password or send us a completed Change member details and options or Switch investment options – current members form available from our website. For the latest investment returns, members can visit our website aonmastertrust.com.au or call us on 1300 880 588. PRE-MixED SEcTOR º High Growth – Index Australian Shares – Index º º High Growth – Active Australian Shares – Diversified º Australian Shares – Core* º º Growth – Index Australian Shares – Socially Responsible* º º Growth – Active Australian Shares – Opportunities* º º Balanced – Index International Shares – Index º º Balanced – Active International Shares – Index ($A hedged) º International Shares – Diversified º º Capital Stable – Index International Shares – Core* º º Capital Stable – Active International Shares – Core ($A hedged)* º International Shares – Emerging Markets* º º Secure – Index International Shares – Opportunities* º º Secure – Active Property – Australian Index º Property – Diversified º Property – Direct º Property – Global Listed ($A hedged)* º º Alternative – Diversified Fixed Interest – Australian Index º Fixed Interest – International Index ($A hedged) º Fixed Interest – Diversified º Fixed Interest – Australian* º Fixed Interest – International ($A hedged)* º º Cash º Diversified – Maple-Brown Abbott * Option available from October 2008. Depending on the timing and size of initial cashflows, the investment performance of a new option may vary from the underlying product. The trustee reserves the right to close or terminate the options (either to refuse to accept new money or enforce reduction of assets) or change underlying products at any time. The trustee will inform you as soon as possible if this affects your nominated choice. TODAY. TOMORROW. READY. 15
  • 16. invESTMEnT OPTiOnS PRE-MixED high Growth high Growth Growth Growth balanced – index – Active – index – Active – index objective To provide a return To provide a return To provide a return To provide a return To provide a return at least 5% above at least 5.5% above at least 4.5% above at least 5% above at least 4% above CPI over rolling CPI over rolling CPI over rolling CPI over rolling CPI over rolling five-year periods. five-year periods. five-year periods. five-year periods. five-year periods. investment strategy Invests 100% of Invests 100% of Invests 85% of the Invests 85% of the Invests 70% of the the portfolio in the portfolio in portfolio in growth portfolio in growth portfolio in growth growth assets. growth assets. assets and 15% in assets and 15% in assets and 30% in defensive assets. defensive assets. defensive assets. risk/return profile Returns can be very Share market Returns are Returns are There is likely to volatile over the investments can generally less generally less be volatility in short to medium be very volatile volatile than the volatile than the returns in the short term. Historically, over the short to High Growth High Growth term but they tend shares have medium term but, portfolio but can portfolio but can to stabilise over offered the highest historically, these still be very volatile still be very volatile longer periods. long-term returns. investments have over the short to over the short to offered the highest medium term. medium term. long-term returns. strategic asset allocation1 32% 37.5% 46% 44% 39% Australian shares 32% 37.5% 46% 44% 39% International shares 6% 6% 8% 7% 7% Property 4% 5% 0% 0% 0% Alternative – growth 5% 0% 0% 0% 0% Alternative – defensive 0% 0% 7.5% 12.5% 5% Aust. fixed interest 12.5% 0% 0% 7.5% 5% Int’l fixed interest 0% 5% 0% 0% 0% Cash management fee2 0.46% pa. 0.90% pa. 0.46% pa. 0.85% pa. 0.46% pa. performance fee3 Nil. 0% to 0.20% pa. Nil. 0% to 0.20% pa. Nil. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 45 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. TODAY. TOMORROW. READY. 16
  • 17. balanced capital Stable capital Stable Secure Secure – Active – index – Active – index – Active objective To provide a return To provide a return To provide a return To provide a return To provide a at least 4.5% above at least 3% above at least 3.5% above at least 2% above return at least CPI over rolling CPI over rolling CPI over rolling CPI over rolling 2.25% above five-year periods. three-year periods. three-year periods. two-year periods. CPI over rolling two-year periods. investment strategy Invests 70% of the Invests 30% of the Invests 30% of the Invests 100% of Invests 100% of portfolio in growth portfolio in growth portfolio in growth the portfolio in the portfolio in assets and 30% in assets and 70% in assets and 70% in defensive assets. defensive assets. defensive assets. defensive assets. defensive assets. risk/return profile There is likely to Relatively low but Relatively low but The most stable The most stable be volatility in stable returns. stable returns. returns. Generally returns. Generally returns in the short There may be some There may be some lower returns than lower returns than term but they tend short-term volatility. short-term volatility. the other options. the other options. to stabilise over longer periods. strategic asset allocation1 30% 12% 12% 0% 0% Australian shares 30% 12% 12% 0% 0% International shares Property 6% 6% 6% 0% 0% 0% 4% 0% 0% 0% Alternative – growth 5% 10% 5% 0% Alternative – defensive 0% 30% 30% 25% Aust. fixed interest 27.5% 10% 25% 10% Int’l fixed interest 30% 30% 27.5% Cash 5% 10% 10% 40% 40% management fee 0.80% pa. 0.46% pa. 0.70% pa. 0.46% pa. 0.55% pa. 2 performance fee3 0% to 0.15% pa. Nil. 0% to 0.10% pa. Nil. 0% to 0.05% pa. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 45 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. 17
  • 18. invESTMEnT OPTiOnS SEcTOR Australian Shares Australian Shares Australian Shares Australian Shares – index – Diversified – core* – Socially Responsible* objective To provide a return that To provide a return that To provide a return that To provide a return that closely matches the exceeds the benchmark exceeds the benchmark exceeds the benchmark benchmark return before index (before fees and index (before fees and index (before fees fees and tax. tax) by 2% pa over tax) by 1.5% pa over and tax) over rolling rolling five-year periods. rolling five-year periods. five-year periods. benchmark index S&P/ASX 200 S&P/ASX 300 S&P/ASX 300 S&P/ASX 300 Accumulation Index. Accumulation Index. Accumulation Index. Accumulation Index. investment strategy Fully replicates the Invests in shares listed Invests in shares listed Predominantly exposed benchmark holdings in on the Australian Stock on the Australian Stock to shares or unit trusts order to closely match Exchange and unlisted Exchange and unlisted listed or about to be the benchmark risk and shares that will be shares that will be listed on the Australian return characteristics. listed within six months listed within six months Stock Exchange. In or related securities. or related securities. selecting shares or unit trusts, consideration is given to one or more socially responsible standards (eg social, ethical or environmental standards). risk/return profile Returns can be very Returns can be very Returns can be very Returns can be very volatile over the short volatile over the short volatile over the short to volatile over the short to to medium term. to medium term. medium term. medium term. Historically, shares have Historically, shares have offered the highest offered the highest long-term returns. long-term returns. benchmark asset 100% Australian shares. 100% Australian shares. 100% Australian shares. 100% Australian shares. allocation1 management fee2 0.45% pa. 0.90% pa. 0.80% pa. 1.32% pa. performance fee3 Nil. 0% to 0.35 % pa. 0% to 0.20 % pa. Nil. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 45 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. * Option available from October 2008 – see summary on page 15. TODAY. TOMORROW. READY. 18
  • 19. Australian Shares international Shares international Shares international Shares – Opportunities* – index – index ($A hedged) – Diversified objective To provide a return that To provide a return that To provide a return that To provide a return that exceeds the benchmark closely matches the closely matches the exceeds the benchmark index (before fees and benchmark return before benchmark return before index (before fees and tax) by 2.5% pa over fees and tax. fees and tax. tax) by 1.5% pa over rolling five-year periods. rolling five-year periods. benchmark index S&P/ASX 300 MSCI World ex Australia MSCI World ex Australia MSCI World ex Australia Accumulation Index. Index (unhedged AUD, Index (hedged AUD, net Index (unhedged AUD, net dividend reinvested). dividend reinvested). net dividend reinvested). investment strategy Invests in shares listed Fully replicates the Fully replicates the Invests in shares listed on the Australian Stock benchmark holdings in benchmark holdings in on stockmarkets around Exchange and unlisted order to closely match order to closely match the world with partial $A shares that will be the benchmark risk and the benchmark risk and hedging (generally less listed within six months return characteristics. return characteristics. than 50%). or related securities. risk/return profile Returns can be very Returns can be very Returns can be very Returns can be very volatile over the short to volatile over the short volatile over the short volatile over the short medium term. to medium term. to medium term. to medium term. Historically, shares have Historically, shares have Historically, shares have offered the highest offered the highest offered the highest long-term returns. long-term returns. long-term returns. benchmark asset 100% Australian shares 100% international 100% international 100% international including unlisted shares shares. shares. shares, including allocation1 that will be listed within emerging markets. six months or related securities. management fee2 1.05% pa. 0.47% pa. 0.47% pa. 0.90% pa. performance fee3 0% to 0.70% pa.** Nil. Nil. 0% to 0.20% pa. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 45 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. * Option available from October 2008 – see summary on page 15. ** Three of the six managers in the fund, managing 35% of the fund, are subject to performance fees. On average, this could result in an increase in fees of approximately 0.14%. 19
  • 20. international Shares international Shares international Shares international Shares – core* – core ($A hedged)* – Emerging Markets* – Opportunities* objective To provide a return that To provide a return that To provide a return that To provide a return that exceeds the benchmark exceeds the benchmark exceeds the benchmark exceeds the benchmark index (before fees and index (before fees and index (before fees and index (before fees and tax) by 1.5% pa over tax) by 1.5% pa over tax) by 2% pa over tax) by 2% pa over rolling five-year periods. rolling five-year periods. rolling five-year periods. rolling five-year periods. benchmark index MSCI World ex Australia MSCI World ex Australia MSCI Emerging MSCI World ex Australia Index (unhedged AUD, Index (hedged AUD, net Markets Index. Index (unhedged AUD, net dividend reinvested). dividend reinvested). net dividend reinvested). investment strategy Invests in shares listed on Invests in shares listed on Invests in shares listed Invests in shares listed stockmarkets around the stockmarkets around the on stockmarkets in on stockmarkets world. No $A hedging. world. Full $A hedging. emerging markets. No in developed and $A hedging. emerging markets. No $A hedging. risk/return profile Returns can be very Returns can be very Returns can be very Returns can be very volatile over the short volatile over the short volatile over the short volatile over the short to medium term. to medium term. to medium term. to medium term. Historically, shares have Historically, shares have Historically, shares have Historically, shares have offered the highest offered the highest offered the highest offered the highest long-term returns. long-term returns. long-term returns. long-term returns. benchmark asset 100% international shares 100% international 100% emerging markets. 100% international including emerging shares, including shares, including allocation1 markets. emerging markets. emerging markets. management fee2 0.80% pa. 0.80% pa. 1.15% pa. 1.05% pa. performance fee3 0% to 0.35% pa. 0% to 0.35% pa. Nil. Nil. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 45 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. * Option available from October 2008 – see summary on page 15. TODAY. TOMORROW. READY. 20
  • 21. Property – Property Property Property Australian index – Diversified – Direct – Global listed ($A hedged)* objective To provide a return that To provide a return that To provide a return that To provide a return that closely matches the exceeds the benchmark exceeds the benchmark exceeds the benchmark benchmark return before index (before fees index (before fees index (before fees and fees and tax. and tax) over rolling and tax) over rolling tax) by 1.75% pa over five-year periods. three-year periods. rolling five-year periods. benchmark index S&P/ASX 200 – Listed Combination of 10-year bond yield + 3%. FTSE EPRA/NAREIT Global Property Accumulation Australian listed, direct Real Estate Net Index Index. and global listed indices. – $A Hedged. investment strategy Fully replicates the Invests in property Invests in high quality Invests in property benchmark holdings in securities listed, or Australian property. trusts and property order to closely match due to be listed, on related securities the benchmark return the Australian Stock listed on developed and risk characteristics. Exchange and developed international markets. international markets exchanges, and direct property holdings. risk/return profile Returns can be Returns can be Returns can be Returns can be volatile over the short volatile over the short volatile over the short volatile over the short to medium term. to medium term. to medium term. to medium term. Historically, property has Historically, property has Historically, property has Historically, property has produced higher returns produced higher returns produced higher returns produced higher returns than fixed interest and than fixed interest and than fixed interest and than fixed interest and cash investments. cash investments. cash investments. cash investments. benchmark asset 100% Australian property 50% Australian property 90–100% direct property. 100% global listed securities. securities. property. allocation1 0–10% cash. 25% direct property. 25% global listed property. management fee2 0.44% pa. 0.73% pa. 1.07% pa. 1.00% pa. performance fee3 Nil. Nil. Nil. Nil. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 45 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. * Option available from October 2008 – see summary on page 15. 21
  • 22. Alternative fixed interest fixed interest fixed interest – Diversified – Australian index – international index – Diversified ($A hedged) objective To provide a return that To provide a return that To provide a return that To provide a return that exceeds the benchmark closely matches the closely matches the exceeds the benchmark index (before fees and benchmark return before benchmark return before index (before fees and tax) by 2.5% pa over fees and tax. fees and tax. tax) by 0.6% pa over rolling five-year periods. rolling three-year periods. benchmark index UBS Warburg Australian UBS Australian Composite Citigroup WGBI ex Aust, 50% UBS Australian Bank Bill Index. Bond Index. 100% hedged to AUD. Composite Bond Index 0+Yr. 50% Lehmann Brothers Global Aggregate Index ($A – Hedged). investment strategy Invests in Uses index sampling Uses index sampling Invests in fixed interest non-traditional assets techniques to techniques to assets across the credit such as infrastructure, approximate the approximate the spectrum both in Australia commodities, hedge benchmark in a range of benchmark in a range and internationally. funds with some cash key risk areas. of key risk areas. Foreign for liquidity. exchange contracts are used to hedge current exposures to Australian dollars. risk/return profile Returns are consistent in Relatively low but Relatively low but Relatively low but the medium term and stable returns with stable returns with stable returns with typically uncorrelated with some volatility. some volatility. some volatility. traditional asset classes. benchmark asset 40% multi-strategy. 100% Australian 100% international 50% Australian fixed fixed interest. fixed interest. interest. allocation1 25% infrastructure. 50% international fixed 25% commodities. interest. 10% cash-enhanced. management fee2 1.10% pa. 0.45% pa. 0.47% pa. 0.60% pa. performance fee3 0% to 0.40% pa. Nil. Nil. Nil. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 45 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. TODAY. TOMORROW. READY. 22
  • 23. fixed interest fixed interest cash Diversified – Australian* – international – Maple-brown Abbott ($A hedged)* objective To provide a return that To provide a return that To provide a return that To provide a return that exceeds the benchmark exceeds the benchmark matches or exceeds the exceeds the average of index (before fees and index (before fees and benchmark index (before other similar balanced tax) by 0.5% pa over tax) by 0.75% pa over fees and tax) over any funds (as measured by rolling three-year periods. rolling three-year periods. 12-month period. the benchmark index and before fees and tax) over rolling three-year periods. benchmark index UBS Australian Lehman Bros Global UBS Warburg Australia S&P Multi-sector 80 Composition Bond Index. Aggregate – $A Hedged. Bank Bill Index. Wholesale Index. investment strategy Invests predominantly Invests in fixed interest Invests in Invests in various asset in Australian fixed assets across the credit short-term securities. classes and applies an interest assets with the spectrum internationally. active value-based style scope to invest across to select securities within the credit spectrum each class. Tactical asset both domestically allocation changes are and internationally. implemented using a value-based style. risk/return profile Relatively low but Relatively low but Low but stable returns May outperform/ stable returns with stable returns with with minimal volatility. underperform in the some volatility. some volatility. short term but volatility is relatively low over the long term. benchmark asset 100% Australian 100% international 100% cash and 45% Australian shares. fixed Interest. fixed Interest. short-term fixed allocation1 15% international shares. interest securities. 10% property. 20% fixed interest. 10% cash. management fee 0.60% pa. 0.60% pa. 0.43% pa. 1.10% pa. 2 performance fee3 Nil. Nil. Nil. Nil. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 45 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. * Option available from October 2008 – see summary on page 15. 23
  • 24. infORMATiOn On SRi OPTiOn ThE AOn MASTER TRuST invESTS in ThE RuSSEll note SOciAllY RESPOnSiblE AuSTRAliAn ShARES PST Which uSES ThE bT WhOlESAlE EThicAl ShARE funD. PlEASE nOTE ThAT ThE TRuSTEE AnD RuSSEll The term ‘we’ in the excerpt below refers to BT invESTMEnT MAnAGEMEnT RESERvE ThE RiGhT Investment Management (RE) Limited, as the underlying investment manager for BT’s Wholesale TO chAnGE MAnAGERS AT AnY TiME WiThOuT Ethical Share Fund and the term ‘Fund’ refers to BT’s PRiOR nOTicE. Wholesale Ethical Share Fund. The following is an excerpt from BT’s Product Disclosure Statement for their Wholesale Ethical Share Fund (19 October 2007). labour, environmental, social and definitions of screens ethical considerations Negative screening means that we exclude companies which do not meet our criteria as set out below. We take labour standards, environmental, social and ethical considerations into account, as well as key Negative screens are used to exclude companies as financial criteria, when selecting, retaining or realising follows: investments of the Fund. Uranium: companies which directly mine uranium for º Investment guidelines relating to labour standards and the purpose of weapons manufacture. environmental, social and ethical considerations are Weapons: manufacturers of weapons and º reviewed regularly (usually monthly, but this timeframe armaments. is not fixed). If our review process identifies that an investment ceases to comply with the investment Alcohol and tobacco: producers of these products. º guidelines for the Fund, the investment will usually be Gaming: manufacturers and providers of º sold as soon as is reasonably practicable, having regard gaming facilities. to the interests of investors (but this may vary on a case Environment: companies that have committed º by case basis). significant or recurrent environmental offences within the last three years, or have been successfully Investments of the Fund are: prosecuted and required to provide remedies within the last year. Environmental offences are offences negatively screened for companies involved in º which have been prosecuted by Australian State uranium, alcohol, tobacco, gaming products and environmental protection agencies and which have weapons and companies with environmental or been drawn to our attention by various international human rights prosecutions; and monitoring agencies, media reports or a company’s positively screened for companies with a ‘sustainable’ º own voluntary disclosures as well as those which have approach to the production of goods or services. The been looked into by local governmental authorities. sustainability criteria employed includes areas such Human rights: companies that have breached º as environmental issues, employment practices, and human rights, anti-discrimination or equal corporate governance and ethics. We will particularly opportunity legislation within the last three years, be seeking out initial public offerings of companies or which have been required to pay compensation which we believe rate well on our criteria. or provide remedies for such breaches within the last year. Breaches of human rights are taken to be breaches where cases have been found against companies by the United Nations Human Rights Committee, the Commonwealth Human Rights and Equal Opportunity Commission, Australian State Antidiscrimination and Equal Opportunity tribunals and various international forums on corporate performance regarding human rights. TODAY. TOMORROW. READY. 24
  • 25. Positive screening means that we actively identify > Established corporate governance procedures companies that meet our specific criteria in ‘sustainable’ and ethics. We consider that a company’s products and services. This includes companies which corporate governance procedures and ethics rate well based on our valuation driven process but also is of fundamental importance to its long-term offer products or services which meet one or more of sustainability. This analysis focuses on: the following: – The manner in which organisational values are established, embraced and reported Provide or enact some environmental and/or social º both within and outside an organisation benefits through management and/or remediation of (eg clear and coherent codes of conduct environmental resources (eg clean technology, waste and compliance with corporate governance and emission reduction, waste management reduction standards); and and recycling systems, technologies and services). – The way in which these values are reflected Demonstrate or enable reduced adverse º in the company’s management processes (eg environmental and social impacts (including policies regarding director share ownership, consumption of scarce resources) relative to currently remuneration procedures and forward- used products or services (covering a range of looking succession planning). specialised industry sections including Material Efficiency Development and improved management Examples of companies that rate well based on our of scarce resources). valuation driven process and which also offer products or Companies exhibiting good work place practices. services that meet one or more of our criteria include: º In assessing this we have regard to labour renewable energy º standards, particularly: sustainable agribusiness º > Occupational health and safety. We consider the manner in which a company deals with ecotourism º its workforce to be a key driver to long- information and other technologies, including º term sustainability. We assess a company’s biotechnologies, medical technologies, healthcare performance by its approach relevant State products and services and Territory occupational health and safety products exhibiting increased recyclability, º legislation, as well as its willingness to submit reusability and reduced resource use, including to the rigours of national and international energy and waste creation. standards that relate to the workplace, such as Australian Standard AS4801 (‘Occupational Health and Safety Management Systems’). > Human resource management and workplace relations. This encompasses a company’s responsibilities to its own employees in terms of human resource issues. We assess a company’s performance by monitoring regulatory compliance (including industrial disputes and human rights and equal opportunity applications), but this analysis also focuses more broadly on a range of qualitative criteria including equal opportunity, consultation and participation in the workplace. more information consent The above extract from the BT Product Disclosure Statement BT Investment Management (RE) Limited (BTIM) have (PDS) for the Wholesale Ethical Share Fund is subject to the consented to this PDS containing the above excerpt from additional information and qualifications contained in the PDS the relevant PDS, accept responsibility for the accuracy of and investors should read the entire PDS. Visit btim.com.au the statements and have not withdrawn their consent. They for more information on BT’s socially responsible investments are not responsible for any other statements regarding this or a copy of the Fund’s PDS and factsheet. investment in the Aon Master Trust Corporate Super PDS. 25
  • 26. inSuRAncE OPTiOnS ThiS SEcTiOn SuMMARiSES EMPlOYERS’ OPTiOnS Minimum death and TPD cover AnD ThE TERMS AnD cOnDiTiOnS APPlYinG TO MEMbERS Of AOn MASTER TRuST cORPORATE SuPER Age Minimum cover WhO ARE inSuRED ThROuGh An AiG lifE GROuP Up to 42 $210,000 inSuRAncE POlicY. cuSTOMiSED cORPORATE SuPER 43 $197,400 PlAnS MAY PlAcE inSuRAncE WiTh AnOThER 44 $184,800 inSuRER – in All cASES, TERMS AnD cOnDiTiOnS 45 $172,200 APPEAR in ThE MEMbER’S PRODucT DiSclOSuRE STATEMEnT (PDS) PART 2. 46 $159,600 47 $147,000 48 $134,400 cover and eligibility 49 $121,800 50 $109,200 The insurance cover and premiums shown in this PDS 51 $96,600 are current as at 1 July 2008. Terms and conditions under 52 $84,000 insurance policies may vary from time to time. Please refer to the policy documents for full details of the terms and 53 $71,400 conditions that will apply. 54 $58,800 55 $46,200 All insurance is subject to the insurer’s acceptance. The insurer may decline cover, impose exclusions on any cover 56 $41,580 granted or add premium loadings where it believes there is 57 $36,960 an increased risk. 58 $32,340 The Aon Master Trust offers insurance options to cover most 59 $27,720 employee needs. Employers can choose default insurance 60 $23,100 options – your super services consultant can advise you on 61 $18,480 insurance options available. 62 $13,860 types of insurance available 63 $9,240 64 $4,600 The following insurance cover is available through the Trust: 65 $0 death-only º death and total and permanent disablement (TPD) º income protection. º Details of each of these benefits and the conditions applying, are set out on pages 29 to 41. $210,000 $157,500 Minimum cover $105,000 $52,500 0 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 Age TODAY. TOMORROW. READY. 26
  • 27. minimum level of insurance cover opting out The minimum level of death and TPD cover provided under A member can opt out of insurance cover at any time by employer plan cover is $210,000. This minimum cover notifying the trustee in writing. However, they need to be reduces from $210,000 at age 42 to nil at age 65 – see the aware that any future applications for insurance cover will be table and graph on page 26. Insurance is not compulsory. subject to providing health evidence for consideration and Your employees may stay with the default option, opt out of acceptance by the insurer. insurance cover, reduce or fix their cover at a dollar amount, or apply for additional insurance cover to meet their needs. increasing cover (voluntary) A member can apply to increase their level of cover at automatic acceptance levels (AAls) and any time. This increased insurance cover is regarded as evidence of insurability ‘voluntary’. They will need to provide health evidence and this increase in insurance cover will be subject to acceptance As a benefit for employers who choose a default insurance by the insurer. option, your employees may be eligible for automatic insurance acceptance up to the limits shown in the tables on page 28, without the need to provide evidence of health. reducing or fixing cover (voluntary) In order for an AAL to apply, the following conditions must A member can reduce or fix their level of cover at a dollar be satisfied: amount at any time by notifying the trustee in writing. The reduced or fixed level cover is regarded as ’voluntary’ cover. the participating employer must nominate the Aon º Master Trust as their ‘default fund’ interim cover the employer must have at least five (for death and º While the member’s application for death or TPD insurance TPD AAL) or ten (for income protection AAL) eligible is being assessed by the insurer they will be provided with employees in the plan, and more than 75% of eligible interim ‘accidental death’ cover. This cover will remain in employees must be insured under the plan place until: new members must join the plan on the date of º commencing employment with a participating employer their application is either accepted or rejected by the º new members must be notified to the trustee within 120 º insurer, or days of commencing employment 90 days from the date of receiving their application, º ‘at work’ conditions must be met, and º whichever occurs first. suitable eligibility conditions are clearly defined and the º insurance benefit for each member is pre-determined The maximum benefit in this case is the lesser of the death using an acceptable basis. insurance applied for and $1 million. Generally, members will need to provide medical evidence if: There is no interim cover in respect of TPD insurance. the above conditions are not met º they are aged 65 or over on the date they commence º minimum death and employment or their employer joins the Trust (for death cover only) TPD insurance cover they request additional cover over the default, or º the default exceeds the AAL for their plan. º The minimum level of cover will be increased each year by 5% or in line with increases in the Consumer Price Index (CPI) – whichever is higher. 27
  • 28. Automatic acceptance levels (AAls) eligible employees in death and TPD AAl in eligible employees in income protection AAl plan plan plan (per month) 10 – 19 $300,000 5–9 Nil 20 – 49 $400,000 10 – 19 $4,000 50 – 99 $550,000 20 – 49 $5,000 100 – 199 $650,000 50 – 99 $6,000 200 – 249 $750,000 100 – 499 $8,000 250 – 499 $800,000 500 – 999 $10,000 500 – 999 $900,000 1,000+ $12,000 1,000+ $1,100,000 Default minimum death and TPD cover of $210,000 applies to plans with 5–9 employees. transferring existing cover note Eligible members can apply to transfer insurance cover they have in other super funds or retail policies into the Aon Transfer of external insurance cover to the Aon Master Master Trust, with no health evidence required. This includes Trust is subject to acceptance by the insurer. cover for death, total and permanent disablement and income protection. This transferred cover will be considered ‘voluntary’ cover and is in addition to any employer plan cover. A statutory duty of disclosure is required and members who apply must make a declaration to this effect. For eligibility and other conditions, members must see the Individual insurance transfer questionnaire available on our website aonmastertrust.com.au. insurance-only accounts Tax rule changes from 1 July 2007 mean that death and TPD benefits paid from super are taxed more favourably than those paid outside of super. Employers who wish to offer employees insurance- only accounts within super can do so through the Aon Master Trust provided the employer pays the insurance premiums and fees. TODAY. TOMORROW. READY. 28
  • 29. death insurance exclusions The death policy excludes: Death cover provides an insurance payout of a member’s death from suicide that occurs within 13 months of º amount insured (up to $5 million), subject to approval by effecting any voluntary increase in insurance cover. It the insurer and the trustee, if the member dies. The death is only the increased amount that is not payable under benefit will usually be paid to the member’s dependants or these circumstances beneficiaries – see page 34. active service in the armed forces of any country or º international organisation when death cover ceases any other underwriting exclusion imposed by the insurer. º Death insurance cover ceases on the earliest date that any of the following apply: transferring cover to the member turns age 70 º Personal Super 60 days after premium payments cease º the Trust policy with the insurer is terminated º a member requests cancellation of cover in writing º If the member is under age 65 and they choose to transfer to Aon Master Trust Personal Super, transfer we receive from the member and accept a continuation º of death cover is automatic* and no application or option application for death-only cover health evidence is required. Premiums automatically the member leaves the Trust as a result of total and º continue to be deducted. permanent disablement * See conditions in previous column. 60 days after the member ceases to be a member of º the Trust the member dies º as specified in General conditions on page 34. º continuation option If a member: is under age 65 º has death insurance in the Trust º leaves their employer, and º ceases to be a member of the Trust for reasons other º than illness or injury, they may be able to purchase continuing death insurance cover from the insurer of the Trust without the need for further health evidence, although they will be required to complete an AIDS declaration. Different premium rates will apply if a member elects to exercise this continuation option. This cover is subject to conditions including, but not limited to: the member must apply for continuation of insurance º cover within 60 days of leaving a participating employer no claim for insurance has been made on the Trust º cover will not exceed the member’s amount insured on º the day prior to the date they leave their employer. 29
  • 30. total and permanent when TPD cover ceases disablement (TPD) insurance TPD insurance cover ceases on the earliest date that any of the following apply: Total and permanent disablement cover provides an the member turns age 65 º insurance payout of a member’s amount insured (up to a benefit under the member’s policy is paid or is payable º $2 million), subject to approval by the insurer and the to the member trustee, if a member become totally and permanently disabled before age 65, in accordance with the applicable 60 days after premium payments cease º TPD definition – see below. the Trust policy with the insurer is terminated º the member requests cancellation of cover in writing º standard definitions of TPD we receive from the member and accept a continuation º option application for TPD cover The definition will depend on the member’s employment status and occupation at the time they stopped work due to 60 days after the member ceases to be a member of º an illness or injury. the Trust the member dies º if the member was working 15 hours or more per week as specified in General conditions on page 34. º when they stopped work due to an illness or injury, they are considered totally and permanently disabled if while insured continuation option under the policy: If the member: they have been unable to perform their usual occupation º due to that illness or injury for six consecutive months, is under age 60 º and the insurer and the trustee are satisfied by medical has TPD insurance in the Trust º and any other relevant evidence that the member leaves their employer º is unlikely to ever be able to return to their usual occupation or any occupation for which they are is continuing in the same or similar occupation, and º reasonably suited by education, training or experience ceases to be a member of the Trust for reasons other º OR than illness or injury, they have suffered the permanent loss of use of two º they may be able to purchase continuing TPD insurance limbs, or the permanent loss of sight of both eyes, or the cover from the insurer of the Trust without the need for permanent loss of use of one limb and permanent loss of further health evidence, although they will be required to sight of one eye. complete an AIDS declaration. Different premium rates will apply if they elect to exercise this continuation option. if the member was working less than 15 hours per week when they stopped work due to an illness or injury, they are This cover is subject to conditions including, but not limited considered totally and permanently disabled if while insured to: under the policy: members must apply for continuation of insurance cover º for six consecutive months after the occurrence of the º within 60 days of leaving a participating employer illness or injury, and as certified by a medical practitioner, no claim for insurance has been made on the Trust º they have been unable to perform at least two of the cover will not exceed the member’s amount insured on º following activities of daily living without the standby the day prior to the date they leave their employer. assistance of another person: bathing, dressing, eating, toileting, transferring (in and out of a chair) OR TPD benefits they have suffered the permanent loss of use of two º limbs, or the permanent loss of sight of both eyes, or the TPD benefits are paid exclusive to any claim made permanent loss of use of one limb and permanent loss of under the member’s income protection insurance sight of one eye. cover (if any). TODAY. TOMORROW. READY. 30
  • 31. exclusions increasing TPD cover The TPD policy excludes: The member can apply to have TPD cover that is disablement directly or indirectly, wholly or partly caused º higher than their death cover subject to a maximum by intentional self-inflicted injury or any such attempt by of twice the death cover and a maximum difference a member whether sane or insane between TPD and death cover of $100,000. Medical active service in the armed forces of any country or º and other evidence may be required by the insurer. international organisation The member will pay an additional 20% on the any other underwriting exclusion imposed by the insurer. º premium rate applying to the amount of TPD cover over the death cover amount. transferring cover to Personal Super If the member is under age 60 and they choose to transfer to Aon Master Trust Personal Super, transfer of TPD cover is automatic* and no application or health evidence is required. Premiums automatically continue to be deducted. * See conditions on page 30. 31
  • 32. income protection insurance partial disability payment A partial disability benefit may be payable to the member Income protection insurance (also known as salary if they continue to be partially disabled beyond the waiting continuance) is available if members work 15 or more period and have been totally disabled for a period of at hours per week (excluding casuals). This cover can provide least 14 consecutive days during the waiting period. Partial members with an income in the event of total disability due disability means that solely because of the illness or injury to illness or injury. Members can receive up to 75% of their which directly caused the total disability, the member: pre-disability income or the amount insured whichever is the is able to perform at least one important duty* of their º lesser (subject to a maximum of $20,000 a month). usual occupation but is unable to perform all of the As an employer, you can choose the default waiting period duties of their usual occupation, that will apply before the benefit is payable (30, 60 or 90 is earning an income from their usual occupation or º days) and the maximum period the benefit will be paid: another occupation at a rate of less than 75% of their monthly pre-disability income, and up to two years º remain under the regular care and attendance and are º up to five years º following the advice of a registered medical practitioner to age 65. º in relation to that illness or injury. Income protection benefits are paid monthly in arrears, after * An important duty is defined as involving at least 20% of overall occupational the expiry of the waiting period. They cease on the earliest tasks responsible for generating at least 20% of your pre-disability income. date that the member reaches age 65, they die, they no claims escalation benefit longer satisfy the policy’s total or partial disability definitions, or they reach the applicable maximum benefit period. Where the maximum benefit period of up to five years or to age 65 applies to the member’s income protection total disability payment insurance, their benefit will increase annually by the lower of 5% or the increase in the Consumer Price Index (as An income protection benefit is payable if the member has determined by the insurer). This will occur one year after been off work due to illness or injury for the entire waiting their income protection benefits commenced (after the period and the insurer and trustee are satisfied by medical expiration of their waiting period) and annually thereafter. and any other relevant evidence that their disablement occurs solely from illness or injury while they are insured and income protection benefit offsets as a result of which they: If any other benefits are payable to the member for loss of are unable to perform at least one important duty* of º income, the income protection insurance benefit paid may their usual occupation necessary to produce income, be reduced so total benefits paid do not exceed 75% of remain under the regular care and attendance and are º pre-disability income (excluding mandated superannuation following the advice of a registered medical practitioner contributions, if any). Other income that will reduce the in relation to that illness or injury, and member’s income protection benefits includes: are not engaged in any occupation (whether paid or º unpaid). workers’ compensation º motor accident compensation º * An important duty is defined as involving at least 20% of overall occupational tasks responsible for generating at least 20% of a member’s pre-disability income. social security benefits º income protection insurance benefits from other º insurance policies any paid sick leave entitlements º other ongoing income generated from ownership in a º business or practice, and ongoing payments from an employer. º TODAY. TOMORROW. READY. 32
  • 33. when income protection cover ceases exclusions Income protection insurance cover ceases on the earliest The income protection policy excludes: date that any of the following apply: intentionally self-inflicted injury or attempted suicide or º the member turns age 65 self-destruction by the member whether sane or insane º 60 days after premium payments cease uncomplicated pregnancy, childbirth or miscarriage º º the Trust’s policy with the insurer is terminated declared or undeclared act of war º º the member requests cancellation of cover in writing active service in the armed forces of any country or º º international organisation the member is no longer permanently and gainfully º employed for 15 hours or more per week any other underwriting exclusion imposed by the insurer. º the date the member ceases to be employed by a º participating employer of the Trust, unless the member is accepted for continuing income protection insurance income protection after transfer to Aon Master Trust Personal Super the member ceases to be a member of the Trust º Benefits are paid exclusive to any claim made under the member dies º the member’s TPD cover (if any). as specified in General conditions on page 34. º transferring cover to Personal Super If the member is under age 65 and transfers to Personal Super, they may apply within 60 days of leaving their employer to continue income protection insurance in Personal Super. They will be required to confirm their occupation, their continued employment and that they meet the minimum work hours requirement. They will also be required to complete an AIDS declaration. 33
  • 34. general conditions cover while out of Australia Normally the member’s insurance cover will continue if they are permanently and gainfully employed and travelling leave without pay or holidaying overseas*. If they are seconded and working overseas*, insurance cover will continue for a period of up to Aon Master Trust Corporate Super members are covered 5 years (or longer with prior approval from the insurer). during periods of leave without pay approved by the employer in writing (including maternity/paternity leave). Note also that if the insurer is not satisfied as to the assessment of a claim being made overseas, they reserve the Death cover continues indefinitely as long as the premium right to request a member’s return to Australia (at their own continues to be paid for the period. expense) for claims assessment and examination prior to Members with TPD or income protection insurance are payment of any benefits. covered during periods of leave without pay approved by the * If, any of the overseas countries/regions you visit have been issued with a level 4 employer in writing (including maternity/paternity leave) for or 5 travel advice by the Department of Foreign Affairs and Trade (DFAT) at the periods of up to 12 months, as long as the premium continues time a member leaves Australia, cover will not continue while the member is in to be paid for the period. There must be documented that country/region. evidence of an agreed return to work date and the members your beneficiaries/dependants must return to work within 30 days of the agreed date otherwise cover will cease. Unless the member has made a binding death benefit nomination, the trustee decides who should receive their duty of disclosure death benefit according to the terms of the Trust Deed. The Aon Master Trust Deed requires the trustee to pay death Before the member enters into a contract of life insurance benefits to ‘eligible dependants’ under superannuation law, with an insurer, they have a duty under the Insurance which can be a spouse, child, financial dependant or someone Contracts Act 1984 to disclose to the insurer every matter in an interdependency relationship with the member. that they know, or could reasonably be expected to know, which is relevant to the insurer’s decision whether to accept If there are no identified dependants, the death benefit is the risk of insurance and, if so, on what terms. normally paid to the legal personal representative. Members can make either binding or non-binding death benefit The member has the same duty to disclose those matters nomination on their accounts in the Aon Master Trust. to the insurer before they renew, extend, vary, transfer or reinstate a contract of insurance. See Death benefit nominations on page 52 for more information. If the member fails to comply with their duty of disclosure and the insurer would not have entered into the contract on privacy any terms, if the failure had not occurred, the insurer may avoid the contract within three years of entering into it. If For information about your privacy as it relates to insurance the member’s non-disclosure is fraudulent, the insurer may arrangements with AIG Life, a full copy of their privacy avoid the contract at any time. statement is available on their website at aiglife.com.au. An insurer who is entitled to avoid a contract of life insurance may, within three years of entering into it, elect not to avoid it but to reduce the sum that the member had been insured note for in accordance with a formula that takes into account the premium that would have been payable if the member had See page 30 for information on permanent disclosed all relevant matters to the insurer. incapacity and page 48 for terminal illness benefits. TODAY. TOMORROW. READY. 34
  • 35. insurance when members cease other circumstances employment If the member terminates employment but does not transfer to Aon Master Trust Personal Super automatically, they may be able to purchase continuing death and TPD insurance on transfer to Aon Master Trust Personal Super cover from the insurer without further health evidence. They If the member terminates employment, and their account must apply within 60 days of terminating employment in the balance is $5,000 or more, they will be transferred to Aon Aon Master Trust. Conditions apply – see Continuation option Master Trust Personal Super after 60 days from the date we on pages 29, and 30. send them their benefit advice letter, unless the member advises us otherwise. Different premium rates will apply and all applications will be subject to acceptance and approval and any additional If the member is under age 65 (death) or under age 60 conditions that the insurer may choose to impose. (TPD) their death and TPD cover (if any) will continue automatically and their premiums will be calculated using the same occupation category they held in Corporate Super. note It is important for members to advise us if their occupation category changes*. If the member transfers to Personal Super and * If a higher risk occupation or an uninsurable occupation applies at the time a they are under age 65, they can apply to continue claim is made, additional premiums may be deducted from any benefit paid or the insurer may reduce or decline the benefit. income protection insurance in Personal Super, but they must apply within 60 days of leaving their on transfer to the Aon Eligible Rollover fund employer. If the member terminates employment, and their account The member must confirm their occupation, their balance is less than $5,000, they will be transferred to the continued employment and that they meet the Aon Eligible Rollover Fund (ERF) after 60 days from the date minimum work hours requirement by completing we send them their benefit advice letter, unless the member a Continuing income protection insurance form. They advises us otherwise. will also need to complete an AIDS declaration. All insurance cover and premium deductions will cease and the member will cease to be a member of the Aon Master Trust – see page 50. 35
  • 36. inSuRAncE cOSTS ThE cOST Of inSuRAncE DEPEnDS On YOuR death TPD income occupational factors chOicES, TYPE Of inSuRAncE AnD AMOunT Of cover cover protection cOvER, OccuPATiOn, AGE AnD (fOR incOME professional PROTEcTiOn) YOuR GEnDER, chOSEn WAiTinG Professionals, executives PERiOD AnD bEnEfiT PERiOD. ThE AOn MASTER and senior management TRuST REviEWS ThE inSuRAncE cOvER OffERED with tertiary 0.90 0.85 0.90 qualifications and high AnD PREMiuM RATES On A REGulAR bASiS. incomes eg CEO, CFO, CPA, lawyer, doctor, pharmacist etc. Insurance premiums are deducted from members’ accounts monthly. The tables on pages 37 to 40 set out the base white collar rates for: Occupations that are office based with no annual death insurance per $1,000 sum insured º manual work, eg clerical roles, professional or annual TPD insurance per $1,000 sum insured º 1.00 1.00 1.00 administrative roles eg annual income protection insurance per $100 º architect, accountant, monthly benefit. computer analyst, lecturer, social worker, administrator, clerk etc. Every occupation has a risk loading or ‘factor’ – see the table, Occupational factors in the next column. The loading grey collar must be applied to the rates shown on the following pages. Occupations which are The rates shown are applicable for occupations classified primarily non-manual but 1.25 1.50 1.35 as ‘white collar’. These rates include stamp duty and 30% may involve light manual duties only, eg hairdresser, brokerage fees paid to Aon Consulting. You can negotiate shop assistant, florist, the brokerage with Aon or your adviser. cashier, tailor etc. The rates and factors shown are correct at the date of issue. blue collar Any increase or decrease in premiums will be charged Occupations that involve automatically to the member. The actual premium charged a moderate degree of manual work, or (but not necessarily the rate or factor) will be advised each 1.50 2.00 1.75 recognised qualified trades, year in members’ benefit statements. eg as baker, gasfitter, electrician, mechanic, The cost of insurance depends on the employer’s and printer, signwriter, member’s choices (if any), type of insurance and amount of greengrocer etc. cover, occupation, age and, for income protection, gender heavy blue collar and chosen waiting and benefit periods. The examples on Heavy manual page 41 illustrate how total costs are calculated. occupations or those with a degree of additional 2.00 3.00 3.00 risk of disability, eg boilermaker, gardener, note storeman, tyre fitter, welder etc. Depending on the member’s actual occupational activities, they may not be eligible for some types of insurance cover. This is at the insurer’s discretion. If the trustee has not been advised of the member’s occupation, they will be rated according to the employer plan default (if any). If there is no employer plan cover, other than minimum level they will be rated ‘Blue collar’. TODAY. TOMORROW. READY. 36
  • 37. death and TPD insurance annual premiums per $1,000 sum insured age next death cover TPD cover age next death cover TPD cover birthday ($) ($) birthday ($) ($) 44 0.99 0.41 16 0.22 0.10 45 1.10 0.47 17 0.31 0.11 46 1.22 0.57 18 0.39 0.14 47 1.35 0.69 19 0.48 0.17 48 1.52 0.82 20 0.50 0.21 49 1.69 0.97 21 0.54 0.20 50 1.91 1.14 22 0.51 0.19 51 2.13 1.34 23 0.46 0.18 52 2.37 1.61 24 0.41 0.16 53 2.65 1.94 25 0.38 0.14 54 2.96 2.30 26 0.36 0.14 55 3.29 2.73 27 0.37 0.13 56 3.61 3.23 28 0.38 0.13 57 3.97 3.78 29 0.38 0.14 58 4.43 4.34 30 0.39 0.15 59 4.92 4.96 31 0.41 0.14 60 5.44 5.65 32 0.42 0.15 61 6.02 6.41 33 0.44 0.17 62 6.64 7.26 34 0.45 0.18 63 7.30 8.21 35 0.50 0.17 64 8.04 9.25 36 0.51 0.18 65 8.81 10.42 37 0.53 0.21 66 10.53 N/A 38 0.58 0.22 67 11.79 N/A 39 0.63 0.23 68 13.21 N/A 40 0.68 0.26 69 14.79 N/A 41 0.73 0.29 70 16.57 N/A 42 0.82 0.32 43 0.89 0.36 37
  • 38. income protection insurance – benefit period up to two years annual premiums per $100 of monthly insured benefit waiting period – male waiting period – female age next birthday 30 days ($) 60 days ($) 90 days ($) 30 days ($) 60 days ($) 90 days ($) 16 3.91 2.63 1.34 5.86 3.95 2.00 17 3.91 2.63 1.34 5.86 3.95 2.00 18 3.91 2.63 1.34 5.86 3.95 2.00 19 3.91 2.63 1.34 5.86 3.95 2.00 20 3.91 2.63 1.34 5.86 3.95 2.00 21 3.91 2.63 1.34 5.86 3.95 2.00 22 3.97 2.65 1.34 5.95 3.97 2.00 23 4.02 2.68 1.36 6.03 4.02 2.04 24 4.08 2.73 1.37 6.12 4.10 2.06 25 4.14 2.77 1.37 6.21 4.15 2.06 26 4.11 2.73 1.34 6.17 4.10 2.00 27 4.02 2.73 1.28 6.03 4.10 1.91 28 3.98 2.60 1.23 5.97 3.90 1.84 29 3.98 2.57 1.18 5.97 3.86 1.77 30 4.01 2.60 1.17 6.01 3.90 1.75 31 4.08 2.61 1.17 6.12 3.92 1.75 32 4.17 2.67 1.17 6.26 4.01 1.75 33 4.31 2.77 1.20 6.46 4.15 1.80 34 4.47 2.86 1.24 6.71 4.29 1.86 35 4.68 2.98 1.30 7.02 4.47 1.95 36 4.91 3.14 1.37 7.36 4.71 2.06 37 5.15 3.31 1.47 7.72 4.96 2.20 38 5.45 3.50 1.56 8.17 5.25 2.35 39 5.75 3.72 1.70 8.62 5.58 2.54 40 6.11 3.97 1.84 9.17 5.95 2.76 41 6.48 4.25 2.01 9.73 6.37 3.01 42 6.92 4.57 2.21 10.37 6.86 3.32 43 7.37 4.91 2.44 11.06 7.36 3.66 44 7.85 5.28 2.71 11.78 7.92 4.06 45 8.40 5.69 3.01 12.59 8.53 4.51 46 8.99 6.17 3.34 13.48 9.26 5.02 47 9.60 6.68 3.74 14.40 10.01 5.61 48 10.30 7.24 4.17 15.44 10.86 6.26 49 11.05 7.88 4.68 16.58 11.82 7.02 50 11.88 8.55 5.24 17.83 12.83 7.87 51 12.76 9.32 5.88 19.14 13.98 8.82 52 13.76 10.16 6.59 20.64 15.25 9.89 53 14.83 11.10 7.41 22.25 16.65 11.11 54 16.00 12.14 8.29 24.00 18.21 12.43 55 17.30 13.30 9.30 25.95 19.96 13.95 56 18.72 14.57 10.43 28.08 21.85 15.64 57 20.06 15.97 11.69 30.10 23.96 17.54 58 21.99 17.54 13.09 32.98 26.31 19.63 59 23.89 19.27 14.64 35.83 28.91 21.96 60 25.97 21.18 16.37 38.96 31.77 24.56 61 28.27 23.29 18.31 42.40 34.93 27.46 62 30.81 25.62 20.42 46.21 38.43 30.64 63 30.81 24.88 19.27 46.21 37.31 28.91 64 19.38 16.48 11.19 29.07 24.72 16.78 65 7.59 5.15 2.71 11.39 7.72 4.06 TODAY. TOMORROW. READY. 38
  • 39. income protection insurance – benefit period up to five years annual premiums per $100 of monthly insured benefit waiting period – male waiting period – female age next birthday 30 days ($) 60 days ($) 90 days ($) 30 days ($) 60 days ($) 90 days ($) 16 5.66 4.52 2.65 7.95 6.31 3.01 17 5.66 4.52 2.65 7.95 6.31 3.01 18 5.66 4.52 2.65 7.95 6.31 3.01 19 5.66 4.52 2.65 7.95 6.31 3.01 20 5.66 4.52 2.65 7.95 6.31 3.01 21 5.66 4.52 2.65 7.95 6.31 3.01 22 5.56 4.45 2.53 8.07 6.39 3.04 23 5.48 4.38 2.43 8.18 6.49 3.07 24 5.41 4.33 2.34 8.30 6.58 3.10 25 5.36 4.29 2.27 8.43 6.67 3.14 26 5.32 4.26 2.20 8.55 6.77 3.17 27 5.37 4.30 2.17 8.79 6.96 3.33 28 5.46 4.37 2.16 9.11 7.21 3.46 29 5.59 4.47 2.16 9.52 7.52 3.58 30 5.78 4.62 2.18 10.02 7.91 3.70 31 6.01 4.79 2.22 10.60 8.36 3.82 32 6.28 5.01 2.28 11.26 8.87 3.96 33 6.60 5.26 2.35 12.01 9.45 4.12 34 6.97 5.55 2.44 12.85 10.10 4.31 35 7.39 5.87 2.55 13.78 10.82 4.53 36 7.86 6.24 2.68 14.80 11.61 4.80 37 8.39 6.64 2.83 15.91 12.47 5.13 38 8.97 7.09 3.02 17.11 13.41 5.53 39 9.61 7.59 3.23 18.42 14.42 6.00 40 10.31 8.14 3.49 19.82 15.51 6.55 41 11.08 8.73 3.78 21.33 16.67 7.20 42 11.93 9.39 4.13 22.94 17.92 7.95 43 12.85 10.11 4.53 24.67 19.26 8.82 44 13.86 10.89 4.99 26.51 20.68 9.81 45 14.96 11.74 5.53 28.47 22.20 10.93 46 16.17 12.68 6.15 30.56 23.82 12.19 47 17.48 13.70 6.86 32.78 25.53 13.60 48 18.92 14.81 7.68 35.15 27.36 15.16 49 20.50 16.03 8.62 37.67 29.30 16.87 50 22.22 17.36 9.69 40.35 31.38 18.74 51 24.10 18.82 10.91 43.22 33.59 20.77 52 26.18 20.43 12.29 46.29 35.95 22.96 53 28.46 22.19 13.86 49.58 38.49 25.30 54 30.97 24.13 15.62 53.12 41.22 27.80 55 33.75 26.28 17.60 56.96 44.17 30.44 56 36.83 28.65 19.83 61.12 47.37 33.23 57 40.25 31.30 22.32 65.67 50.86 36.14 58 44.07 34.24 25.10 70.65 54.69 39.19 59 48.35 37.54 28.20 76.16 58.92 42.35 60 53.16 41.25 31.65 82.28 63.61 45.62 61 55.32 42.91 32.65 83.81 64.78 44.80 62 54.00 41.89 31.66 80.05 61.90 41.27 63 50.28 39.03 28.80 73.24 56.67 35.74 64 41.99 32.64 22.59 60.81 47.13 27.15 65 22.13 17.29 8.12 32.42 25.25 9.64 39
  • 40. income protection insurance – benefit period to age 65 annual premiums per $100 of monthly insured benefit waiting period male waiting period female age next birthday 30 days ($) 60 days ($) 90 days ($) 30 days ($) 60 days ($) 90 days ($) 16 7.17 5.88 5.33 11.13 9.05 6.80 17 7.17 5.88 5.33 11.13 9.05 6.80 18 7.17 5.88 5.33 11.13 9.05 6.80 19 7.17 5.88 5.33 11.13 9.05 6.80 20 7.17 5.88 5.33 11.13 9.05 6.80 21 7.17 5.88 5.33 11.13 9.05 6.80 22 7.11 5.83 5.13 11.41 9.27 6.95 23 7.07 5.80 4.96 11.69 9.49 7.09 24 7.04 5.78 4.81 11.98 9.73 7.25 25 7.04 5.78 4.68 12.29 9.97 7.40 26 7.07 5.80 4.58 12.60 10.22 7.56 27 7.20 5.91 4.55 13.09 10.61 8.04 28 7.41 6.07 4.57 13.74 11.13 8.48 29 7.69 6.30 4.63 14.54 11.77 8.91 30 8.06 6.59 4.73 15.52 12.55 9.34 31 8.50 6.95 4.88 16.66 13.46 9.80 32 9.03 7.37 5.07 17.98 14.52 10.32 33 9.64 7.86 5.32 19.49 15.72 10.90 34 10.35 8.42 5.61 21.18 17.07 11.59 35 11.15 9.07 5.97 23.07 18.57 12.40 36 12.06 9.79 6.39 25.16 20.24 13.36 37 13.07 10.59 6.89 27.45 22.06 14.50 38 14.18 11.48 7.47 29.94 24.05 15.86 39 15.41 12.47 8.14 32.63 26.19 17.45 40 16.76 13.54 8.92 35.52 28.49 19.31 41 18.22 14.71 9.83 38.59 30.93 21.46 42 19.81 15.98 10.87 41.84 33.51 23.91 43 21.52 17.34 12.06 45.25 36.22 26.70 44 23.36 18.80 13.41 48.79 39.04 29.81 45 25.31 20.36 14.95 52.46 41.95 33.25 46 27.39 22.02 16.68 56.22 44.93 37.00 47 29.58 23.76 18.63 60.05 47.97 41.04 48 31.89 25.60 20.79 63.91 51.02 45.33 49 34.31 27.53 23.19 67.77 54.08 49.82 50 36.83 29.53 25.81 71.60 57.11 54.44 51 39.43 31.60 28.65 75.36 60.09 59.11 52 42.13 33.74 31.72 79.02 62.98 63.74 53 44.89 35.94 34.98 82.54 65.76 68.24 54 47.71 38.18 38.41 85.89 68.40 72.48 55 50.59 40.46 41.99 89.02 70.88 76.35 56 53.48 42.76 45.65 91.89 73.14 79.70 57 56.24 44.95 49.21 94.26 75.01 82.25 58 58.74 46.93 52.48 95.97 76.35 83.72 59 60.78 48.55 55.19 96.78 76.99 83.85 60 62.11 49.60 56.99 96.41 76.70 82.31 61 62.33 49.77 57.38 94.44 75.15 78.72 62 60.85 48.60 55.64 90.20 71.80 72.52 63 56.65 45.28 50.60 82.52 65.75 62.81 64 47.32 37.87 39.70 68.52 54.68 47.71 65 24.94 20.06 14.27 36.53 29.29 16.94 TODAY. TOMORROW. READY. 40
  • 41. calculating premiums – examples death cover STep 1 death cover $200,000 member: Jane (female) select the type and level of cover age: 31 STep 2 $200,000 ÷ $1,000 = $200 occupation: divide this amount by $1,000 (for cost per $1,000 insured) Nurse (blue collar) STep 3 cover: $200 x 0.42 = $84 multiply this figure by the relevant age rate Death cover level: STep 4 $84 x 1.5 = $126 $200,000 multiply by the relevant occupation factor total annual premium $126.00 (or $10.50 per month) death & TPD cover STep 1 death cover $200,000 member: John (male) TPD cover $200,000 select the type and level of cover age: 24 STep 2 $200,000 ÷ $1,000 = $200 occupation: $200,000 ÷ $1,000 = $200 divide this amount by $1,000 (for cost per $1,000 insured) Office worker (white collar) STep 3 $200 x 0.38 = $76 cover: $200 x 0.14 = $28 multiply these figures by the relevant age rates Death & TPD cover level: STep 4 $76 x 1.0 = $76 $200,000 $28 x 1.0 = $28 multiply by the relevant occupation factors total annual premium $104.00 (or $8.67 per month) income protection cover STep 1 income protection member: Mark (male) 75% of $70,000 = $52,500 select the type and level of cover age: 44 STep 2 occupation: $52,500 ÷ 12 = $4,375 calculate monthly income by dividing by 12 Sales representative (grey collar) STep 3 $4,375 ÷ $100 = $43.75 cover: divide this amount by $100 (for cost per $100 insured) Income protection (indemnity) STep 4 $43.75 x 3.01 = $131.69 chosen waiting period: multiply this figure by the relevant age rate 90 days STep 5 benefit period: $131.69 x 1.35 = $177.77 multiply by the relevant occupation factor 2 years level: total annual premium $177.77 (or $14.81 per month) 75% of a $70,000 pa salary 41
  • 42. TAx AnD SuPER tax on concessional contributions SuPER cAn bE A TAx-EffEcTivE WAY fOR MEMbERS TO SAvE. ThiS SEcTiOn PROviDES A bRiEf SuMMARY Concessional contributions are taxed at a rate of 15% in the Of hOW SuPER iS TAxED AS AT 1 julY 2008. Trust. Amounts over the contribution cap will be effectively taxed at the highest marginal tax rate plus Medicare levy. Contributions above the concessional cap will count towards a summary the non-concessional cap. For more information on the contribution cap refer to page 12. providing tax file numbers tax on investment earnings The trustee must request a member’s tax file number Complying superannuation funds are taxed on investment (TFN) under the provisions of the Superannuation Industry earnings at a lower rate than most types of investment. Tax (Supervision) Act 1993. of up to 15% is deducted from the investment earnings of the Trust. Where a member makes a TFN declaration to an employer, this is taken to be an authority for the employer to quote spouse contribution splitting the TFN to the superannuation fund to which the employer makes contributions on a member’s behalf. Members may split or transfer their concessional contributions to their spouse. The maximum amount of Members are not obliged to supply their TFN, but if they do concessional contributions that can be split is the lesser of: they will: 85% of the total concessional contributions, or º be entitled to concessional rates of tax on your benefit º the concessional contribution cap for the financial year. º aid the smooth transfer of benefits when they roll over º from one fund to another A spouse is defined as a married or de facto partner of the make it easier to locate or consolidate their benefits in a º opposite sex. Same sex couples are not currently eligible. fund. An $80 withdrawal fee is charged to a member’s account for If the trustee does not hold a member’s TFN: each spouse split payment (maximum once a year). we cannot accept non-concessional contributions on º Non-concessional contributions cannot be split with a spouse. their behalf for accounts opened on or after 1 July 2007, the top º tax rebates for spouse contributions marginal tax rate plus Medicare levy will be applied to all If a spouse earns less than $13,800 a year (including concessional contributions. reportable fringe benefits) and a member makes spouse Consequences of failing to provide a TFN may change in future. contributions for them, they may be eligible for a tax rebate of up to $540 a year. The trustee will treat a member’s TFN confidentially and use it for legal purposes only. For example, applying the The amount of spouse contributions is unlimited, but the concessional tax rate to benefit payments, providing maximum rebate is 18% of $3,000 (ie $540). The rebate information to the Commissioner of Taxation, providing is reduced if the member’s spouse earns over $10,800 and the number to a rollover fund and finding or identifying a phases out completely if they earn over $13,800 a year. The member’s benefits. member can claim the rebate on their tax return for the year in which the contribution is made. Non-concessional contribution caps apply to the receiving spouse. TODAY. TOMORROW. READY. 42
  • 43. tax when members access their super tax on death benefits Generally, members may only access their super when they Tax on death benefits varies according to who receives the retire – see Accessing super benefits on page 48. benefit and how it is paid. Members may defer tax by rolling over their benefits within Lump sum death benefits are tax-free if paid to a spouse, the super system (including purchasing retirement income a child under the age of 18, or any person financially streams). dependent on a member or in an interdependency relationship with a member. Different tax rules apply to income received from retirement income streams – see the Aon Master Trust Pension PDS for Lump sum death benefits paid to a non-dependant are taxed more information. at 15% on the taxable component, plus Medicare or any other government levy. lump sum tax rates If a death benefit is paid to a member’s legal personal representative, they will be responsible for withholding the components tax treatment appropriate level of tax for the final beneficiary. Please see page 52 for anti-detriment tax benefits for eligible tax-exempt tax-free dependants of a member. taxable under age 55: 21.5% (inclusive of Medicare levy) tax on total and permanent disablement aged 55 to 59: first $145,000* (TPD) benefits tax-free and remainder taxed at 16.5% (inclusive of Medicare levy) Generally if a member is under 60 and they receive a TPD aged 60 or over: tax-free benefit, the part of the benefit representing service up to the date of disablement is taxed as a lump sum. The part of the benefit that relates to projected service from the date of their * This amount applies in 2008/09 and is indexed each financial year in line with AWOTE in increments of $5,000 (rounded down). disablement to age 65 is tax free if they qualify for invalidity under tax legislation. If a member is thinking of retiring or accessing their super, we recommend that they contact an adviser as soon as If a member is aged 60 and over the benefit is tax-free. possible to discuss their options. If they do not have an adviser but would like to be put in touch with one, they can terminal illness call us on 1300 880 588. If a member suffers from an illness or has incurred an injury that could result in death within a 12-month period information (commencing from the date of medical certification provided to the trustee) they may be eligible to receive their super benefits even if they are employed. If a member Taxation laws may change as a result of government meets terminal illness provisions, they may receive tax legislation. Members can call the Australian Taxation concessions on their super benefit. Office on 13 10 20, visit ato.gov.au/super or talk to an adviser for the latest information. 43
  • 44. fEES AnD OThER cOSTS ThE WARninG bElOW iS REQuiRED unDER Fees that apply can be negotiated with employers depending on plan requirements. An indication of the Aon Master Trust AuSTRAliAn lAW. SPEcific infORMATiOn fee structure for members is shown on page 45. AbOuT fEES AnD cOSTS iS cOnSiDERED On ThE fOllOWinG PAGES Of ThiS DOcuMEnT. The trustee can change the fees that apply to the Aon Master Trust members with your consent or after 30 days written notice. did you know? This document shows fees and other costs that your plan may be charged. These fees and costs may be deducted from: Small differences in both investment performance and fees and costs can member’s money (account balance), º have a substantial impact on your long the returns on the member’s investment, or º term returns. the Trust’s assets as a whole. º For example, total annual fees and costs of Insurance costs are set out on pages 36 to 40 and taxes on 2% of your fund balance rather than 1% pages 42 to 43. could reduce your final return by up to 20% over a 30 year period (for example, reduce You should read all of the information about fees it from $100,000 to $80,000). and costs because it is important to understand their impact on members’ investments. You should consider whether features such as superior investment performance or the Fees and costs for particular investment options are shown provision of better member services justify on pages 16 to 22. higher fees and costs. Member fees and asset administration fees and adviser fees You may be able to negotiate to pay lower (if any) are deducted directly from members’ accounts. contribution fees and management costs Other management fees are deducted from the Trust’s where applicable. Ask the fund or your investment return. All fees paid are shown on members’ financial adviser. annual benefit statements. Any exit fees charged to benefit to find out more payments when members leave the Trust will be shown on their exit statement. If you would like to find out more, or see An employer may elect to pay the member fees and asset the impact of the fees based on your own administration fees on behalf of their employees, if they wish. circumstances, the Australian Securities and Investments Commission (ASIC) website (www.fido.asic.gov.au) has a superannuation calculator to help you check out different fee options. TODAY. TOMORROW. READY. 44
  • 45. fees that apply to members’ accounts are summarised below. Additional fees may be applicable to employers depending on service and consulting requirements. These will be negotiated when applicable. type of fee or cost amount how and when paid fees when a member’s money moves in or out of the fund establishment fee Nil Not applicable The fee to open a member’s investment contribution fee Nil Not applicable The fee on each amount contributed to an investment, either by an employer or a member as negotiated with their adviser, if applicable transfer fee Nil Not applicable The fee on each amount transferred to a member’s investment as negotiated with their adviser, if applicable withdrawal fee $80 Deducted from the benefit payment when it is paid The fee on each amount a member takes out of their investment, including any spouse split payments and family law payments per person termination fee Nil Not applicable The fee to close an investment management costs member fee $63 pa Deducted from a member’s account monthly The fee for administering a member’s account asset administration fee Up to 1.1% pa of a Deducted from a member’s account monthly, member’s account balance. the fee is calculated using a member’s The fee for administering a member’s assets/investments, as account balance at the end of each month negotiated with you as their employer management fee The fee varies according Deducted from the Trust’s investment to a member’s chosen earnings before the unit price is calculated Calculated using an Indirect Cost Ratio (ICR)1. This fee covers investment option(s) and and applied to a member’s account. These the cost of managing a member’s investments and includes ranges from 0.43% pa fees vary for each investment option and can investment management fees, custodial fees and cost to 1.32% pa plus any change each year recoveries performance fees which The amount a member pays for specific investment options is may be earned shown on pages 16 to 22 service fees adviser service fee2 Asset-based fee up to Deducted from a member’s account monthly 2% pa (ongoing), or fixed- (ongoing fees) or as a one-off amount A fee for planning and financial advice, as negotiated with a dollar fee up to $10,000 pa (ad hoc). The asset-based fee is calculated member’s adviser, if applicable (ongoing or ad hoc) using a member’s account balance at the end of each month investment switching fee Nil Not applicable A fee for changing investment options buy/sell spread Nil No buy/sell spreads currently apply The fee or transaction costs involved with buying and selling specific investments ICR is the ratio of the Trust’s total management costs not deducted directly from member accounts and is expressed as a percentage of the Trust’s total average net 1 assets in each investment option. The ICR for each investment option (shown as management fees on pages 16 to 23) varies according to the associated cost. See page 46 for details on adviser remuneration. 2 45
  • 46. example of annual fees and checking transactions costs Members can check the transactions in and out of The table below gives an example of how the fees and costs in their account at any time by logging into their online the Pre-mixed Balanced – Index option can affect a member’s account at aonmastertrust.com.au. Members will superannuation investment over a one-year period. You can need their user name and password. use this table to compare the Trust with other superannuation products. (This example ignores the effect of contributions, earnings, tax and other deductions on the account balance, and their impact on management costs. It also ignores any fee reduction an employer may negotiate). ExAMPlE – Pre-mixed balanced – index investment bAlAncE Of $50,000 WiTh TOTAl cOnTRibuTiOnS Of $5,000 DuRinG YEAR contribution fees / 0% for every additional $5,000 a member puts in, they will be charged Transfer fees $0. PluS And, every $50,000 a member has in the fund they will be charged º 1.1% asset administration fee, plus Management costs $780 each year plus $63 in member fees (regardless of their balance). º 0.46% management fee, plus º $63 annual member fee ($1.21 per week) EQuAlS if a member puts in $5,000 during a year and their balance was cost of fund $50,000, then for that year they will be charged fees of: $843* What it costs a member will depend on the investment option they choose and, the fees they negotiate with the fund or financial adviser. * Additional fees may apply: establishment fee – $0 And, if the member leaves the fund, they may also be charged a withdrawal fee of $80. additional explanation adviser remuneration of fees and costs An adviser may recommend an employer join this fund and may receive remuneration for their services which can include advice on asset selection and allocation, insurance tax deductions and taxation. Adviser fees can be deducted from members’ accounts and are shown in members’ transaction statements Most of the fees paid directly by members are tax (available anytime online or by calling us) and included in deductible. The Trust passes on the benefits of tax annual benefit statements. The adviser’s remuneration is paid deductions to members. monthly in arrears and may include: asset administration fee – The Aon Master Trust transfers within the Trust º may pay an asset based commission to the financial Transfers between Aon Master Trust Corporate Super, Personal adviser (if any) of up to 0.6% pa of member assets. This Super and Pension are processed without any charge. cost is negotiated with the employer and included in management costs. insurance brokerage – Aon Master Trust can pay up to º 21% of insurance premiums to the adviser. This cost is negotiated with the employer. TODAY. TOMORROW. READY. 46
  • 47. adviser service fee personal – If a member has Independent fund managers managing the underlying º products of these investment options charge the Trust buy/ appointed an adviser, they and their adviser can agree sell spreads which represent the transaction costs incurred on an annual service fee for the personal advice they when assets are bought or sold. These costs are reflected in provide (for example, developing and implementing a the investment performance of each option. financial plan). This fee is deducted from the member’s account and paid to the adviser. The fee can be: family law valuation fee > an ongoing asset-based fee capped at 2% pa, calculated using the member’s account balance at Under family law legislation, an ‘eligible person’ (see the the end of each month and deducted monthly, or definition on page 53) may obtain certain information about a member’s superannuation account. The administrator charges > one or both of the following: a fee of $200 per family law valuation ($500 for defined benefit – an ongoing fixed-dollar fee capped at a maximum members) to the person who requests it at the time the request of $10,000 pa and deducted monthly, and*/or is made. The fee will be charged to the person directly and is not deducted from the member’s account. – an ad hoc fixed-dollar fee capped at a maximum of $10,000 pa and deducted as a one-off amount. special request fees * The sum of ongoing and ad hoc fixed-dollar fees cannot exceed $10,000 pa. A fee of $160 for any family law splits. $80 is charged to º example: Let’s say the member has a total account balance each party at the time of the split. of $100,000 and that they have agreed an ongoing asset- A fee of $160 for any temporary residency payments. º based fee of 1% pa. The fee deducted from their account each month will be $83 (1% x $100,000 / 12). goods and services tax (GST) To authorise payment of this fee, an Authority to advise All fees charged to members are inclusive of GST. form (available from our website or by calling us on 1300 880 588) must be completed by the member and small accounts their adviser and sent to the Trust. In accordance with member protection legislation, the Please note that the trustee has the discretion to refuse to administration fees charged each year on account balances deduct an adviser service fee. less than $1,000 will not exceed the investment earnings credited. This restriction on fees does not extend to taxation, manager performance fee insurance costs, or management fees. Investment managers may charge a fee for overperformance increases or alteration in charges of investment returns, for example 10% of any excess return over benchmark. This fee is deducted from investment The member fee and withdrawal fee may be indexed annually earnings before unit prices are calculated and is only with changes in the Average Weekly Ordinary Time Earnings paid if the performance objectives are achieved. Potential (AWOTE) index. We can also change fees at any time if we performance fee ranges are shown on pages 16 to 23. give employers and members 30 days written notice. units and buy/sell spreads plan fee Additions to a member’s account are made by buying Your plan may be charged an additional fee depending on units at the applicable unit buy price. Most deductions to a the complexity of the benefit design. This can take the form member’s account, including tax or fees, are made by selling of a flat annual fee and/or an extra member fee. If your plan units at the applicable unit sell price. Currently, the trustee is a defined benefit design, an additional annual actuarial fee does not charge buy/sell spreads on any of the investment will be charged according to the complexity of the service options but reserves the right to introduce them at any time level required. with a 30-day written notice to employers and members. 47
  • 48. AccESSinG SuPER bEnEfiTS ThE AOn MASTER TRuST GivES YOuR EMPlOYEES ThE preservation age is based age OPPORTuniTY TO cOnTinuE AS MEMbERS EvEn if on your date of birth ThEY lEAvE YOuR EMPlOYMEnT. ThEiR invESTMEnT before 1 July 1960 55 AnD inSuRAncE ARRAnGEMEnTS cAn bE cOnTinuED WiThin AOn MASTER TRuST PERSOnAl SuPER. between 1 July 1960 and 30 June 1961 56 between 1 July 1961 and 30 June 1962 57 When super benefits are paid between 1 July 1962 and 30 June 1963 58 The Aon Master Trust can provide resignation, retirement, between 1 July 1963 and 30 June 1964 59 death, disability and income protection benefits. Employment Termination Payments (ETPs) that qualify under 1 July 1964 or after 60 transitional rules and superannuation lump sums can be used to purchase an Aon Master Trust retirement pension or a In addition to preserved super, there are two other transition to retirement pension, if the member satisfies the categories: ‘unrestricted non-preserved’ super, which can be preservation requirements listed below. accessed at any time, and ‘restricted non-preserved’ super, which in some cases can be accessed when a member ceases The resignation or retirement benefit payable is the total current employment. If a member’s super benefits fall into balance of the member’s accounts. If the employee is eligible these two categories, it will be shown on their annual benefit for a death or total and permanent disablement insurance statement and they can contact us regarding access. benefit, it will be paid in addition to their account balance. Income protection insurance benefit payments will be paid transition to retirement monthly once approved by the insurer. If a member reaches preservation age and keeps working, they can choose to access some of their super under preservation and accessing super transition to retirement rules. This requires converting part or all of their benefits to a transition to retirement pension (a In most cases, access to a member’s super is restricted until non-commutable income stream). they retire or they transition to retirement. Most money in the super system is ‘preserved super’. Generally, preserved The Aon Master Trust Pension offers a transition to super can only be accessed if a member: retirement pension – members can contact us or visit our website for more information and a copy of the Aon Master reaches age 65 º Trust Pension PDS. reaches age 60 and leaves their employer º reaches their preservation age (see table) and retires º retirement permanently from the workforce reaches their preservation age and keeps working, but º Members can roll over their benefit to the Aon Master Trust chooses to access some super under the rules which Pension, which offers an account-based income stream govern transition to retirement in retirement. obtains release on severe financial hardship or º compassionate grounds super benefit estimate is a temporary resident leaving Australia permanently for º overseas (conditions apply) suffers from an illness or incurs an injury that will result º Members can log in to their account (user in death within a 12 month period from the date of name and password required) on our website aonmastertrust.com.au and use the benefit medical certification calculator to get an estimate of their benefit. becomes totally incapacitated or dies. º If you would like more information about conditions and requirements call us on 1300 880 588. TODAY. TOMORROW. READY. 48
  • 49. transferring out of the Trust transfer to Aon Master Trust Personal Super Under portability legislation, members may transfer their super to another fund (subject to conditions that may be An automatic transfer to Personal Super means members imposed under the trust deed). If they transfer their whole will have: benefit from the Trust, they will no longer be a member of, no rollovers to organise – their account will be invested º or have any rights under, the Trust. Members may, however, in Personal Super in line with their existing strategy for choose to rejoin the Trust in future. Members can contact us future cashflow for more information. no forms to complete – see note below º If members want to leave some of their super in the Trust, no Corporate Super withdrawal fee º they are required to retain a minimum balance of $5,000 no Personal Super entry fee º (this amount may be subject to change). no time out of the market – their super will be invested º If a member has not made a contribution to the Trust for six at all times months and their balance falls below $5,000 the trustee may on transfer, the same: º transfer their benefit to the Eligible Rollover Fund (see page 50). > death and total and permanent disablement insurance cover (no health evidence required) – see unit pricing and benefit payments page 35 for conditions See Unit pricing policy and procedures on page 14 for > occupation category for insurance – members should information on unit pricing for benefit payments and other let us know if their occupation changes – see page member transactions. 35 for conditions > investment strategy (which they can change any time) leaving an employer > website and access to online services. Members must leave Aon Master Trust Corporate Super Members’ fees and premiums will be as noted in the Aon when they terminate employment in their employer plan. Master Trust Personal Super PDS – a copy of which they will receive with their benefit advice letter. Alternatively, We will automatically transfer a member’s Corporate Super members can download a copy from our website: membership: aonmastertrust.com.au. to Aon Master Trust Personal Super if their account º balance is $5,000 or more note to the Aon Eligible Rollover Fund if their account balance º is less than $5,000. If members have income protection insurance in Once a member or their employer advises us that they Corporate Super which they intend to continue have ceased employment, we will send them a benefit on transfer, they must complete and send us the advice letter (once we have confirmed their termination Continuation of income protection form (which they date and received their last SG payment) advising them of will receive with their benefit advice letter) within their benefit transfer details. Transfers to Aon Master Trust 60 days of leaving their employer – see page 35 for Personal Super or the Aon Eligible Rollover Fund take place more information. automatically, after 60 days from the date of their benefit advice letter, unless the member advises us otherwise. For insurance-only plans, see next page. When super benefits are paid on page 48 provides other benefit options available to members on ceasing employment. 49
  • 50. transfer to the Aon Eligible Rollover permanent incapacity fund (ERf) benefit On transfer to the Aon ERF, a member’s insurance cover and premium deductions will cease and they will cease to be a member of the Aon Master Trust. Their account balance If members are not entitled to a TPD insurance will be invested in a defensive investment strategy, which is benefit, but become permanently incapacitated, the likely to produce lower long-term investment returns than a sum of their account balance may be paid to them balanced or growth strategy. Their ERF account will receive if they have ceased to be gainfully employed, and investment earnings and be charged fees by the ERF, subject the trustee is satisfied that they are unlikely, because to statutory member protection. of physical or mental ill-health, ever to engage in gainful employment for which they are reasonably Members can claim their benefit from an ERF at any time, qualified by education, training or experience. subject to preservation rules. The trustee’s chosen ERF is: Aon Eligible Rollover fund GPO Box 9819 Sydney NSW 2001 Phone: 1300 880 588 Fax: 1800 010 435 insurance-only plans If a member terminates employment in an insurance-only plan in the Aon Master Trust, we will notify them in writing and their insurance cover will cease from the date they terminate employment. Their membership in the Aon Master Trust will also cease as at the date of termination. Members may have an option to continue their insurance cover and they must contact us on 1300 880 588 or their adviser (if any) to discuss their options as soon as they receive our letter as specific time periods apply for application. If members have super benefits in addition to their insurance cover (in an insurance-only plan), their benefits will be treated as outlined on page 49, based on their account balance at the date of termination. TODAY. TOMORROW. READY. 50
  • 51. OThER iMPORTAnT infORMATiOn termination of your plan Members must provide us with a valid address to ensure that they receive the most current information. Members can update their information online by logging in at If you decide to terminate your participation as an employer- aonmastertrust.com.au. sponsor, you may arrange for your employees’ account balances to be transferred to another fund by successor fund transfer or member consent. An additional charge to cover other information on request the trustee’s legal costs will be negotiated in the event of a successor fund transfer. Other aspects of the termination Information including product disclosure statements, privacy may vary depending on the circumstances and arrangements policy and annual reports is available on our website. of your plan. We may provide other information on request to a participating employer, member, person who was a member policy committee within the previous 12 months, or any other beneficiary of the Trust. We may charge fees for reasonable costs incurred. If you have more than 49 employees in the Aon Master Trust, we are required to set up a policy committee for The information must be generally available, reasonably your employees with an equal number of employer practicable to give and reasonably required for and member representatives. If you have fewer than 50 understanding: members, a committee is only required at the request of whether to acquire this product º at least five members. current, former or future benefit entitlements º Your super services consultant can attend half-yearly the main features, management and financial condition º committee meetings and discuss investment and of the Aon Master Trust administration updates, developments within the Trust the investments and investment performance of the Aon º and super in general and other issues affecting employers Master Trust. and members. The documents we must give on request include: insurer the governing rules (trust deed) of the Trust º the audited accounts and copy of the auditor’s report º The standard insurer for the Trust is currently American the risk management plan º International Assurance Company (Australia) Limited (ABN 79 most recent copy of the annual report. º 004 837 861 AFSL 230043) – trading as AIG Life. The insurer provides members with insurance cover in accordance with There are important exceptions from the disclosure the insurance policy taken out by the trustee. Any change of requirements for internal working documents, confidential insurer will be advised to members. Customised plans may be information, or information or documents that would, or able to negotiate a separate insurance policy. Contact us for may tend to disclose personal information, trade secrets or more information. commercially valuable information devalued by disclosure. communicating with you trust deed Keeping members informed about their super is important. The trust deed has been amended from time to time. It We do this through regular reports, updates, education may be amended by agreement between the trustee and material and our website aonmastertrust.com.au. the settlor (Aon Consulting Pty Limited) at any time. The powers to amend are limited by the current trust deed and An annual benefit statement is sent to members in the by law. Specific rules regarding termination of the Trust and second half of each year. The statement includes members’ distribution of assets upon termination are contained in the account balance, contributions, investment earnings, fees, trust deed and rules. The trust deed is available for inspection taxes and other information. Members also have access to at the office of the administrator. Alternatively, a copy may their transaction statements, newsletters, annual report and be posted to you for a fee of $50. investment performance updates online. 51
  • 52. privacy non-binding death benefit nomination Members can make a non-binding death benefit nomination We collect and keep personal information about you and by completing the relevant section of the Change member your employees to manage your investment in the Trust. details and options form available on our website and sending This information may be disclosed to the Trust’s insurer, it to us. A non-binding death benefit nomination is used only administrator, auditors, government agencies or other parties as a guide to a member’s wishes on who should receive their including your adviser as required for the management of death benefit. It is not binding on the trustee. the Trust. The Privacy Act 1988 provides rules for the treatment of anti-detriment tax refunds personal information and allows you and your employees to access personal information held by the Trust. If any of this Where a death benefit payment is made to an individual information is incorrect, you have the opportunity to correct who was a spouse, former spouse or child of the member, it. In some circumstances, you may be denied access to your the trustee may calculate an ‘anti-detriment’ amount that information. Our Privacy Officer can assist with any questions will increase the death benefit payment to the eligible regarding privacy. dependant or dependants. An ‘anti-detriment’ payment is a refund of contributions tax paid on all contributions made to You can obtain a copy of the Trust’s privacy statement or the Trust by the member since joining the Aon Master Trust the full privacy policy and management plan by visiting our or since 1 July 1988, whichever is later, which reduces the website, or writing to the Privacy Officer, Aon Master Trust, death benefit payable. GPO Box 9819, Sydney NSW 2001. anti-money laundering rules death benefit nominations member identification binding death benefit nomination Under the Anti-Money Laundering and Counter-Terrorism If members wish to make a binding death benefit Financing Act 2006 (AML/CTF Act) we require a certified copy nomination, which is legally binding on the trustee, of a photo ID and a residential address from members before they must complete and send us a Binding death benefit nomination form available on our website aonmastertrust. processing a withdrawal, rollover or transfer from the Trust. com.au. There is no charge to maintain a binding Where certified ID is not available the trustee will accept nomination on a member’s account. secondary ID documents, a list of which is available in the Superannuation benefit transfer or payment request form on A binding nomination is valid for three years from the day our website. after the date of signature and can be renewed, revoked or amended at any time. Please see the factsheet Identification (ID) rules and certification of documents on our website for more information. For more information see the factsheet Binding death benefit nomination on our website. compliance obligations Generally, if a member does not hold a binding nomination or the member’s binding nomination is invalid, death Under the AML/CTF Act, we may be required to seek more benefits are paid according to the terms of the trust deed. information from members or delay or withhold transactions See page 34 for more information. where we have reasonable grounds to believe they breach the law. Where legally obliged to do so, we may need to disclose the information gathered to the law enforcement or regulatory agencies. TODAY. TOMORROW. READY. 52
  • 53. socially responsible investments bankruptcy and super benefits The trustee does not explicitly take labor standards or Where contributions are made to a superannuation fund by environmental, social or ethical considerations into account a person who has been declared bankrupt in order to defeat in selecting, retaining or realising investments. Nor are creditors, these contributions may be clawed back by the these considerations taken into account when appointing or Official Receiver in Bankruptcy. removing investment managers (except for the Australian Shares – Socially Responsible* option). complaints resolution * Option available from October 2008. The Aon Master Trust has a procedure for dealing with spouse membership member complaints. Complaints should be made in writing by the member to the Inquiries Officer, Aon Master Trust, GPO Box 9819, Sydney NSW 2001. The trustee will Member spouses can join Aon Master Trust Personal Super, consider and respond to your complaint within 90 days with investment and insurance options as shown in the Aon (final resolution may take longer than 90 days). The trustee Master Trust Personal Super PDS. Spouses pay a 0.5% pa will advise members of any decision within 30 days of the asset administration fee, plus any fee negotiated with them decision being made. or their adviser. Member spouses can send us a completed Personal Super: Member application form available in the If members are dissatisfied with the decision of the trustee, Personal Super PDS available from our website (or contact us they may have the right to lodge a complaint with the for a copy) and complete the Spouse membership section. Superannuation Complaints Tribunal (SCT). The SCT is an independent body that reviews trustee decisions relating to members. Members can contact the SCT by phone family law and super benefits on 1300 780 808 or write to Locked Bag 3060, GPO Melbourne Vic 3001. After the breakdown of a marriage, super may be split between the parties, regardless of whose account it is held If the SCT accepts a member’s complaint it will try to resolve in. Superannuation can be divided by agreement or by order it by conciliation. If this is not successful, the SCT may make of the Family Court. To help reach an agreement, an eligible a binding determination on all parties. person may make an application for information and/or a superannuation valuation by applying to the trustee. updating this PDS An ‘eligible person’ in this case includes a member of the Trust, their spouse or a person contemplating a We may update information in this PDS which is not materially superannuation agreement with the member, eg a fiancé. adverse to you or your employees by posting the new An eligible person does not include those in de facto information on our website aonmastertrust.com.au. We will also relationships. The trustee is entitled to charge a reasonable provide you or your employees with a hard copy on request. fee for information and/or valuations. If someone other than the member makes the application, we are prevented by legislation from informing the member. Family law and superannuation can be complex, so we recommend that members and their spouses seek financial and legal advice before considering splitting superannuation assets. 53
  • 54. WhAT TO DO nExT ThE AOn MASTER TRuST OffERS EMPlOYERS A The Change member details and options form is used to obtain personal details, insurance option details, chOicE Of SuPERAnnuATiOn SOluTiOnS. ThE investment option selection and beneficiary nomination. STAnDARD cORPORATE SuPER OPTiOnS DEScRibED in ThiS PDS ARE fOR ORGAniSATiOnS with five OR employees or over WhO ARE jOininG ThE PlAn. ORGAniSATiOnS WiTh lESS ThAn fivE EMPlOYEES For successor fund transfers: If your employees are WhO inTEnD jOininG, cAn jOin AOn MASTER transferring from an existing super fund or another master trust, we can negotiate directly with the TRuST PERSOnAl SuPER. outgoing service provider to arrange a successor fund transfer if appropriate. In this case, new application Super funds with over 500 members or total assets of over forms may not be required. $5,000,000 may often have special requirements, including defined benefit options, insurance tailoring and employer contribution matching arrangements. We can provide these making financial decisions? services and will prepare a schedule to complement the Employer: Customised Super application form at the back of this PDS – please contact us for more information. If you or your employees would like advice on choosing investment options, deciding on insurance or comparing financial products, call us on  consider joining as an employer 1300 880 588 for more information about financial If you choose to join Aon Master Trust Corporate planning services. Super, an authorised officer of your company will need to complete an Employer: Application agreement form. Please contact us if you require more information about the options shown.  oin your employees j You can either: complete and send us a New member advice and º schedule, available from the forms section of our website (we will enrol your employees in the Trust and send each new member a Change member details and options form to complete and return to us) OR ask each of your employees to complete º a Change member details and options form (unless joining the Aon Master Trust on a ‘successor fund’ transfer). Copies can be provided to members following receipt of your Employer: Application agreement form. TODAY. TOMORROW. READY. 54
  • 55. AOn MASTER TRuST cORPORATE SuPER Employer: Application agreement Use this form to apply to join Aon Master Trust Corporate Super as a participating employer, if you have five or more employees who will be joining the Plan. Employers with less than five employees should direct their employees to join Aon Master Trust Personal Super. If you have any questions, call us on 1300 880 588. EMPlOYER DETAilS Preferred plan name Employer name ABN Street address Suburb State Postcode If your postal address is different from your registered address, please provide details below. Postal address Suburb State Postcode Title Contact name Position Email Telephone Facsimile Plan commencement date cORPORATE SuPER – EMPlOYER: APPlicATiOn AGREEMEnT DATE iSSuED: 1 julY 2008 Aon Master Trust ABN 68 964 712 340, RSE R1000566 Trustee: Aon Superannuation Pty Limited ABN 83 057 982 822, AFSL 237465, RSE L0000437 Page 1 of 6
  • 56. cATEGORiES AnD cOnTRibuTiOnS You can specify up to five categories and contribution designs – eg senior managers, staff, casuals etc. Categories B, C, D and E are only required if contributions or benefits differ between categories. Please contact us if you require more than five categories. category A Description/contributions When are employees eligible to join this category? category b (optional) Description/contributions When are employees eligible to join this category? category c (optional) Description/contributions When are employees eligible to join this category? category D (optional) Description/contributions When are employees eligible to join this category? category E (optional) Description/contributions When are employees eligible to join this category? invESTMEnTS Each member may choose an investment strategy from the options described in the Aon Master Trust Corporate Super – Employer Guide Product Disclosure Statement. The default option is Pre-mixed Balanced – Index. Please indicate your choice below if you wish to nominate another option. Nominated default investment option: cORPORATE SuPER – EMPlOYER: APPlicATiOn AGREEMEnT DATE iSSuED: 1 julY 2008 Aon Master Trust ABN 68 964 712 340, RSE R1000566 Trustee: Aon Superannuation Pty Limited ABN 83 057 982 822, AFSL 237465, RSE L0000437 Page 2 of 6
  • 57. RESiGnATiOn AnD RETiREMEnT bEnEfiTS Equals total account balance. DEATh-OnlY OR DEATh AnD TPD inSuRAncE Please complete applicable categories below indicating the basis of insured benefits (1A, 2C or 3E). If an option is not selected, the minimum level of death and TPD insurance will apply. Regardless of the formula selected, if the formula results in a sum insured for your members which is less than the minimum level of death and TPD cover, then the minimum level of death and TPD cover will apply. basis of insured benefits Select one option per category. The insured benefit in addition to total account balance, is calculated as: 1A = (Variable) x annual salary x future service (years and complete months) to age 65 2C = (Variable) x annual salary 3E = (Variable) (fixed dollar amount) category A 1. Please tick one option. Death-only Death and TPD 2. Choose basis of insured benefits (1A, 2C or 3E) 3. Variable $ category b (optional) category D (optional) 1. Please tick one option. 1. Please tick one option. Death-only Death-only Death and TPD Death and TPD 2. Choose basis of insured benefits (1A, 2C or 3E) 2. Choose basis of insured benefits (1A, 2C or 3E) 3. Variable $ 3. Variable $ category c (optional) category E (optional) 1. Please tick one option. 1. Please tick one option. Death-only Death-only Death and TPD Death and TPD 2. Choose basis of insured benefits (1A, 2C or 3E) 2. Choose basis of insured benefits (1A, 2C or 3E) 3. Variable $ 3. Variable $ cORPORATE SuPER – EMPlOYER: APPlicATiOn AGREEMEnT DATE iSSuED: 1 julY 2008 Aon Master Trust ABN 68 964 712 340, RSE R1000566 Trustee: Aon Superannuation Pty Limited ABN 83 057 982 822, AFSL 237465, RSE L0000437 Page 3 of 6
  • 58. incOME PROTEcTiOn inSuRAncE Income protection insurance of 75% of taxable salary payable up to selected benefit period, as selected below, is to apply to the following categories: Category A yes no Category B yes no Category C yes no Category D yes no Category E yes no The income protection waiting period can be one of the following: (please tick one) 30 days 60 days 90 days The minimum benefit period can be one of the following: (please tick one) up to two years up to five years to age 65 AuTOMATic AccEPTAncE liMiT EliGibiliTY An Automatic Acceptance Limit (AAL) is only available where 75% or more of your eligible employees have insurance cover through the Aon Master Trust. (Select the box that applies to the number of eligible employees you have.) Death and TPD income protection Default minimum death and TPD cover of $210,000 applies to plans with 5–9 employees. number of employees AAl (per month) number of employees AAl (per month) 10–19 $300,000 5–9 Nil 20–49 $400,000 10–19 $4,000 50–99 $550,000 20–49 $5,000 100–199 $650,000 50–99 $6,000 200–249 $750,000 100–499 $8,000 250–499 $800,000 500–999 $10,000 500–999 $900,000 1,000+ $12,000 1,000+ $1,100,000 fEES Fees must be within the trustee’s minimum and maximum prescribed amounts. Fees applying to the Plan are as follows: $63 pa PluS Member fee Asset administration fee (0%-1.1%) % Asset based commission included in above (0%-0.6%) % cORPORATE SuPER – EMPlOYER: APPlicATiOn AGREEMEnT DATE iSSuED: 1 julY 2008 Aon Master Trust ABN 68 964 712 340, RSE R1000566 Trustee: Aon Superannuation Pty Limited ABN 83 057 982 822, AFSL 237465, RSE L0000437 Page 4 of 6
  • 59. Insurance brokerage rate (0%-30%) % Percentage of insurance brokerage as commission to adviser (0%-70%) % Death-only, death and TPD and income protection premiums that differ from the standard rates shown in this Product Disclosure Statement will be shown in an attached schedule. cOSTS Will the employer pay administration and/or insurance costs in addition to the contributions listed in section 2?* Member fee yes no Asset administration fee yes no Death-only and death and TPD insurance premium yes no Income protection insurance premium yes no * additional contributions paid by employers for the payment of fees and/or premiums will count towards members’ contributions reported to the Australian Taxation Office. POlicY cOMMiTTEE Is a policy committee to be established? yes no If yes, please provide representatives’ names if known (equal numbers of employer and member representatives are required on a policy committee). Employer representatives Member representatives PRivAcY Personal information The personal information that the Aon Master Trust collects is used to process your application, administer your account and provide you with benefits and options and conduct research about how to improve Aon Master Trust services and products. Unless required or authorised by law, we will only provide your personal information to authorised service providers and other Aon companies who use the information to administer your account and provide services to you. Marketing material The Aon Master Trust may send marketing material to members and participating employers about exclusive offers and promotions. If you do not want to receive this material please cross this box For more information about privacy, including a copy of the Aon Master Trust privacy policy, call us on 1300 880 588 or visit aonmastertrust.com.au. cORPORATE SuPER – EMPlOYER: APPlicATiOn AGREEMEnT DATE iSSuED: 1 julY 2008 Aon Master Trust ABN 68 964 712 340, RSE R1000566 Trustee: Aon Superannuation Pty Limited ABN 83 057 982 822, AFSL 237465, RSE L0000437 Page 5 of 6
  • 60. DEclARATiOn AnD AGREEMEnT To Aon Superannuation Pty Limited, trustee of the Aon Master Trust: the employer applies to participate in the Trust º the employer intends to join five or more employees as members of the Aon Master Trust º the employer acknowledges that it has received and understood the Aon Master Trust Corporate Super – Employer Guide Product Disclosure Statement º dated 1 July 2008 in consideration of being admitted to participate in the Trust the employer agrees with the trustee and with each of the members to observe and º perform each of the relevant provisions of the trust deed and this agreement I/we consent to the fee outlined to be paid to the adviser I/we have nominated, if any. º for use when the employer is a company The common seal of the employer was affixed in the presence of: Director/secretary 1 signature Director/secretary 2 signature Common seal Date for use when the employer is a sole trader/partnership Signed By Date Print name Signature of witness Date Name of witness ADviSER DETAilS – ADviSER TO cOMPlETE (OPTiOnAl) If you have appointed a financial adviser who has negotiated with the product issuer on your behalf, to obtain Plan information and receive remuneration your adviser must complete this section. Adviser code Adviser name Adviser dealer group Telephone Postal address Suburb State Postcode Adviser’s signature Date cORPORATE SuPER – EMPlOYER: APPlicATiOn AGREEMEnT DATE iSSuED: 1 julY 2008 Send your completed form to: Aon Master Trust, GPO Box 9819, Sydney NSW 2001 Page 6 of 6
  • 61. AOn MASTER TRuST cORPORATE SuPER Employer: customised super application agreement Use this form to apply to join Aon Master Trust Customised Corporate Super as a participating employer if you have five or more employees joining the Plan after discussing your customised requirements with us. Employers with less than five employees should direct their employees to join Aon Master Trust Personal Super. Attached schedules may vary conditions described in the Product Disclosure Statement. If you have any questions, call us on 1300 880 588. EMPlOYER DETAilS Preferred plan name Employer name ABN Street address Suburb State Postcode If your postal address is different from your residential address, please provide details below. Postal address Suburb State Postcode Title Contact name Position Email Telephone Facsimile Plan commencement date cATEGORiES AnD cOnTRibuTiOnS Refer to attached schedule. invESTMEnTS Refer to attached schedule. cORPORATE SuPER – EMPlOYER: cuSTOMiSED SuPER APPlicATiOn AGREEMEnT DATE iSSuED: 1 julY 2008 Aon Master Trust ABN 68 964 712 340, RSE R1000566 Trustee: Aon Superannuation Pty Limited ABN 83 057 982 822, AFSL 237465, RSE L0000437 Page 1 of 3
  • 62. RESiGnATiOn AnD RETiREMEnT bEnEfiTS Refer to attached schedule. DEATh-OnlY OR DEATh AnD TPD inSuRAncE Refer to attached schedule. incOME PROTEcTiOn inSuRAncE Refer to attached schedule. AuTOMATic AccEPTAncE liMiT EliGibiliTY Refer to attached schedule. fEES Refer to attached schedule. POlicY cOMMiTTEE Is a policy committee to be established? yes no PRivAcY Personal information The personal information that the Aon Master Trust collects is used to process your application, administer your account and provide you with benefits and options and conduct research about how to improve Aon Master Trust services and products. Unless required or authorised by law, we will only provide your personal information to authorised service providers and other Aon companies who use the information to administer your account and provide services to you. Marketing material The Aon Master Trust may send marketing material to members and participating employers about exclusive offers and promotions. If you do not want to receive this material please cross this box For more information about privacy, including a copy of the Aon Master Trust privacy policy, call us on 1300 880 588 or visit aonmastertrust.com.au. cORPORATE SuPER – EMPlOYER: cuSTOMiSED SuPER APPlicATiOn AGREEMEnT DATE iSSuED: 1 julY 2008 Aon Master Trust ABN 68 964 712 340, RSE R1000566 Trustee: Aon Superannuation Pty Limited ABN 83 057 982 822, AFSL 237465, RSE L0000437 Page 2 of 3
  • 63. DEclARATiOn AnD AGREEMEnT To Aon Superannuation Pty Limited, trustee of the Aon Master Trust: the employer applies to participate in the Trust º the employer intends to join five or more employees as members of the Aon Master Trust º the employer acknowledges that it has received and understood the Aon Master Trust Corporate Super – Employer Guide Product Disclosure Statement º dated 1 July 2008 in consideration of being admitted to participate in the Trust the employer agrees with the trustee and with each of the members to observe and º perform each of the relevant provisions of the trust deed and this agreement I/we consent to the fee outlined to be paid to the adviser I/we have nominated. º The employer has received and approved the benefit design as outlined in the attached schedule. º for use when the employer is a company The common seal of the employer was affixed in the presence of: Director/secretary 1 signature Director/secretary 2 signature Common seal Date for use when the employer is a sole trader/partnership Signed By Date Print name Signature of witness Date Name of witness ADviSER DETAilS – ADviSER TO cOMPlETE (OPTiOnAl) If you have appointed a financial adviser who has negotiated with the product issuer on your behalf, to obtain Plan information and receive remuneration your adviser must complete this section. Adviser code Adviser name Adviser dealer group Telephone Postal address Suburb State Postcode Adviser’s signature Date cORPORATE SuPER – EMPlOYER: cuSTOMiSED SuPER APPlicATiOn AGREEMEnT DATE iSSuED: 1 julY 2008 Send your completed form to: Aon Master Trust, GPO Box 9819, Sydney NSW 2001 Page 3 of 3
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  • 65. 1 July 2008 email contactcentre@aon.com.au To whom it may concern AON MASTER TRUST – CORPORATE SUPER COMPLIANCE ADVICE This letter confirms that Aon Master Trust – Corporate Super, is part of the Aon Master Trust (‘the Trust’) (ABN 68 964 712 340, RSE R1000566). It is a complying, resident regulated superannuation fund as defined under Section 10(1) of the Superannuation Industry (Supervision) Act 1993. The trustee of the Aon Master Trust is Aon Superannuation Pty Limited (ABN 83 057 982 822, AFSL 237465, RSE L0000437). The Aon Master Trust was established by a trust deed dated 25 June 1990 and is able to accept contributions from employers, members and spouses, government co-contributions and rollovers/transfers from other complying funds. In the event that the Fund’s complying status is revoked the trustee would receive notice to that effect under section 63 of the Superannuation Industry (Supervision) Act 1993. The trustee confirms that it has not received nor does it expect to receive any such notice. Yours sincerely Jennifer Dean Fund Secretary For and on behalf of the trustee of the Aon Master Trust, Aon Superannuation Pty Limited Superannuation Fund Numbers (SFNs) are no longer used and the relevant identifiers for the Trust are given below. ABN: 68 964 712 340 SPIN: AON0201AU Trustee: Aon Superannuation Pty Limited Aon has always valued the privacy of personal information. If you would like a copy of our Privacy Policy, you can contact us or access it from our website at www.aon.com.au.
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  • 67. DiREcTORY Aon Master Trust relationship between the Aon Master Trust GPO Box 9819 trustee and some service Sydney NSW 2001 providers to the Trust Phone 1300 880 588 Fax 1800 010 435 ABN 68 964 712 340 The administrator, Aon Consulting Pty Limited, owns RSE R1000566 all shares in the trustee, Aon Superannuation Pty Limited. Aon Corporation Inc. is the ultimate owner of Administrator Aon Consulting Pty Limited. Aon Consulting Pty Limited ABN 48 002 288 646 Aon Consulting Pty Limited is paid fees for its AFSL 236667 services to Aon Master Trust Corporate Super. These services include administration, investment Trustee and general consulting and form part of the Aon Superannuation Pty Limited management fees described on page 45. ABN 83 057 982 822 AFSL 237465 The trustee undertakes that it will not deal with RSE L0000437 service providers who are associates of the trustee more favourably than it would deal with any other custodian services independent service providers. BNP Paribas Funds Services Australasia Pty Ltd ABN 71 002 655 674 The trustee advises that under the law, where the AFSL 241080 trustee invests, it must deal with the other party to the investment transaction at arm’s length or on insurer arm’s length terms. American International Assurance Company (Australia) Limited, trading as AIG Life ABN 79 004 837 861 AFSL 230043 Eligible Rollover fund Aon Eligible Rollover Fund GPO Box 9819 Sydney NSW 2001 Phone: 1300 880 588 Fax: 1800 010 435 ABN 54 338 733 881 RSE R1000573 67 65
  • 68. Administrator Aon Consulting Pty Limited Aon Master Trust GPO Box 9819 Sydney NSW 2001 phone 1300 880 588 fax 1800 010 435 contactcentre@aon.com.au aonmastertrust.com.au aonmastertrust.com.au © 2008 This work is copyright. Apart from any use permitted under the Copyright Act 1968, no part may be reproduced by any process nor may any other exclusive right be exercised without the permission of Aon Consulting Pty Limited. is an employee benefits program owned and administered by Aon Consulting Pty Limited. ™ is a registered trademark of Aon Consulting Pty Limited. ACON284A 0708

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